Ukraine's leading English-language newspaper since 1995

Ukraine’s perch among the world’s “free countries” is worthy of applause, yet its economic weakness is lamentable since there’s a simple solution: a liberalized tax code

all- and medium-sized businesses, imposes high taxes, and fosters rampant corruption.

As an article in this week’s Post points out, Ukraine’s strength in formal freedoms - like freedom of association or the right to demand a change in government without fear of persecution - was overshadowed by a miserable performance in economic freedom.

Ukraine’s perch among the world’s 90 “free countries” for the second straight year is worthy of applause, yet its economic weakness is lamentable because there’s a simple, long-delayed solution that could kick-start improvement: adoption of a new, liberalized tax code.

If anyone has an inherent interest in such a matter, it’s Yulia Tymoshenko. Reforming the tax code would provide that needed breakthrough to dash the anti-business accusations dogging her since the re-privatization campaign. A revitalized tax code with corporate tax incentives and benefits – halving the burdensome payroll tax for starters – will attract much needed budget revenue and encourage companies to emerge from Ukraine’s vast shadow economy.

Such reform is accomplishable in one year and it will leave as much of an impression on investors and voters as Tymoshenko’s now-famous campaign to return lost bank deposits.

Tymoshenko’s iron will, when pointed in the right direction, can move mountains. It would be a winning recipe for her, Ukraine’s pro-Western coalition, and the country as a whole, to push tax reform through the halls of parliament this year. Given the Tymoshenko-led coalition has a thin majority in parliament, further delays are inexcusable.