The Cabinet named 8 taxes which will be left after the reform

  • 7/11/14 4:25 PM

The government is preparing sweeping changes to the Tax Code

The Ministry of Economic Development published a draft Decree "On Approval of the Concept of reforming the tax system," which involves reducing the number of taxes from 22 to 8.

The document says  that  after the reform will remain:

- Corporate income tax;
- Individual income tax;
- VAT;
- Excise tax;
- Resource tax;
- Property Tax;
- Flat tax;
- Fixed agricultural Tax

14 Other taxes will be abolished. In total they generate only 2% of the state budget, but require a separate administration, says the project published on a web-site of the Ministry of Economy.

These include: the fee for the first registration of the vehicle; fee for parking vehicles; environmental tax; royalties for oil transportation; land tax; fee for the use of radio frequency resource; fee for special usage of water; fee for special usage of forest resources; fee for the development of viticulture, horticulture and hop; surcharge to the current tariff for electricity and heat; surcharge to the current tariff for natural gas; tourist tax; fee for certain types of business activities; State duty.

The paper noted that in the leading countries taxes does not exceed 10: Germany (9 taxes), China (7 taxes), Spain (8 taxes), the Netherlands (9 taxes), Norway (4 taxes) Portugal (8 taxes) France (7 taxes) and Sweden (4 taxes).

Also, the concept involves the introduction of differentiated VAT rate of 7% between the tax payers of VAT and 17% in realization for nonpayers of VAT .  It is expected that this will attract 70 billion USD  by the elimination of shadow schemes and increase the amount of working capital manufacturers.

Single social payment will be reduced from average 36,77 % to 18% .

All Social Security funds – for  temporary disability, unemployment, accident at work, the disabled - are planned  to merge into a single fund.

 

Source: LB.ua

 

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