Thanks to the fight against corruption affecting VAT refunds, the Ukrainian budget has been supplemented with an additional UAH 2 billion, Prime Minister of Ukraine Arseniy Yatseniuk has said.

"In August we received an additional UAH 2 billion to the national budget precisely because of the fight against corruption in VAT refunds," he said on the TV program "Ten minutes with the prime minister."

Yatseniuk said this became possible due to the new VAT administration system.

"In the long term budget expenditure should be reduced. And we are doing this. At this stage we propose setting up a single rate of 20% for four basic taxes," Yatseniuk said.

He stressed this tax rate could be changed, which is a subject of debate. In addition, he said that the reduction of budget expenditure won't affect social payments.

"We propose establishing a single tax on wages at 20% from 2018," Yatseniuk added.