12:50 27.10.2015

Draft tax reform bill registered in parliament

Draft tax reform bill registered in parliament

Draft law No. 3357 on amending the Tax Code of Ukraine regarding tax liberalization was registered in the Ukrainian parliament on Monday.

The initiators of the law include representatives of all the factions of the coalition, as well as MPs from Opposition Bloc, Vidrodzhennia group, and independent MPs.

Chairman of the parliamentary committee for tax and customs policy, Nina Yuzhanina, said that the working group for elaborating on the common concept of tax reform would submit a draft law on liberal tax reform as an alternative to the Finance Ministry's draft law after the local elections to avoid accusations of political motivation.

Yuzhanina said that the draft law foresees the radical restructuring of the functions of the State Fiscal Service, the expansion of electronic services, a reduction of the tax burden on the wage fund, the transfer to taxation of distributed profit, and the improvement of VAT electronic administration.

As reported, the National Reforms Council in spring 2015 created the targeted group Tax Reform headed by Finance Minister of Ukraine Natalie Jaresko. In May-August, open communications platforms and sector platforms where the ministry and targeted groups discussed the tax reform concept with experts and business representatives were launched. It was planned that the reform will be voted on by early autumn, which would allow it to be launched at the beginning of 2016 and the new budget could be built on it.

However, a single plan could not be drawn up. In early September several options of the concept were presented at a meeting of the National Reforms Council and it was decided to create a working group to work on the tax reform concept.

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