11:53 17.12.2015

Authors of liberal tax reform propose postponing its adoption for Q1 2016

2 min read
Authors of liberal tax reform propose postponing its adoption for Q1 2016

The authors of the liberal option of the tax reform (bill No. 3357) have proposed that the adoption of the tax reform is postponed for the first quarter of 2016.

The initiative is outlined in the statement of the authors published on Wednesday.

They said that it is proposed to urgently pass their option of the tax reform at first reading and then improve the tax legislation on the basis of the bill. They proposed that the government is revised the tax reform on the basis of this bill with experts, business, international financial organizations and approve the legislation in the first quarter of 2016. The 2016 budget should be formed on the basis of the current laws, taking into account the reduction of single social security tax by 40% (coefficient 0.6) and the revoking of the additional imports duty with sticking to the benchmark for the budget deficit proposed by the International Monetary Fund (IMF). The authors of the bill proposed that the moratorium on checks of small business is extended.

The authors of the liberal option said that some proposals in the government's option of the tax reform are unacceptable. They said that taxation of dividends at the rate of 18% with taxation of profit at 18% make the country unattractive for investors. Taxation of the wage fund at the present rates (18% of personal income tax, 20% of single social security tax and 1.5% of military tax) do not create the conditions when salaries could be removed from the shadows.

They also said that the government's bill retains discrediting requirements that allow lifting the tax credits under formal signs: errors in the tax invoices and violation of the requirements of bylaws during its registration.

The authors of the liberal reform insist on decisive changes, adding that it is impossible to make middle-of-the-road steps.

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