The tax system in Ukraine has a significant number of problems and requires further reform that could start as soon as this autumn, Vice Premier Sergiy Tigipko has said.
"Autumn could be spent on the discussion of this or that approach to business. Obvious solutions could be made in late autumn…" Tigipko said at a conference dedicated to the tax reform on Thursday.
According to the vice premier, the Ernst & Young international auditing company at the request of the government prepared a survey of world tendencies in the tax sphere and pointed to the priorities of reform of Ukraine’s tax system. According to the auditing company’s research, the country, among other things, has some problems in the taxation of real estate and persons with high income.
"In almost all countries the same principle is operating: earn more – pay more. And in terms of percentage ratios people pay more. Our practically level scale of taxation differs [from the widely spread international practice]," Tigipko said.
In addition, according to him, imperfect legislation leaves significant parts of the economy untaxed.
Tigipko also criticized the current system of tax benefits because of its disorder and lack of efficiency, and called the penal system "burdensome and not always adequate." The ineffective judicial system worsens the situation, as does corruption and the low level of training of employees of the tax service regarding some issues, the vice premier added.
Among the problems that have to be resolved in the near future, Tigipko named the ambiguity of legislation – inaccuracy of details and procedures and the ambiguity of regulations.
