Optimization of taxes to bring the economy out of the shadows – Yulia Tymoshenko

Оптимизация налогов выведет экономику из тени - Юлия Тимошенко

Reduction of tax pressure on employers, the abolition of VAT, the unified social tax and 37 “quasi-taxes” as well as the reform of the tax authorities is the challenges of the New economic policy.

This was stated by the leader of “Batkivshchyna” Yulia Tymoshenko today during the presentation of the program of economic development of the country in Kiev, the press service of the party.

According to Tymoshenko, one of the reasons for economic turmoil in Ukraine – shadowing of half of Ukraine’s economy due to the inefficient and hostile to business tax policy.

“The tax system is inadequate, does not meet the goals and objectives, and became the terror of domestic entrepreneurship”, she said, stressing that the tax burden in Ukraine is extremely high and amounts to 39% of GDP, and given the “bribe tax for business” accounts for 48% of GDP, whereas according to the world standards should not exceed 29%.

Оптимизация налогов выведет экономику из тени - Юлия Тимошенко

As noted, Tymoshenko is confident that we should abandon the single social contribution in favor of personal pension system as “corrupt” VAT.

“In more than 50 countries of the world there is no value added tax. Among them: USA, Japan, Singapore, Australia etc. So I want to suggest replacing the VAT with a choice of those taxes which have or in Japan, or in USA or in Singapore. It is better to put a moderate tax on the sale of goods and services, slowly reducing it, but to make a solid base, affordable taxes, and clean up the corruption,” she said.

Tymoshenko proposes to lift and 37 “quasi-taxes”, which form the only 0,48% of revenue in the budget, but are at the same “corruption trough”.

At the same time, she said, small and medium entrepreneurs have to stay on a simplified system of taxation, and farmers receive preferential treatment.

In addition, Tymoshenko drew attention to the fact that the global trend is the easing of the tax system and decrease tax burden on business.

“Lower tax rates does not lead the economy out of the shadows. The only way to build a new economy – changing the system of taxation,” she said.