Ukrainian businessmen think taxation policy and corruption in Ukraine are their biggest problems, and that the situation in this sphere has worsened this year, according to a report on competitiveness of Ukraine's regions in 2011 presented by the Foundation for Effective Governance in Kyiv on Nov. 30.
According to the survey, the importance of the role of the country’s tax policy in business grew from 14% to 16% in 2011, and corruption from 10% to 15%.
The foundation’s experts think that the fact that tax policy became one of the top obstacles for businesses is most likely to be connected with the coming into effect of the Tax Code of Ukraine on Jan. 1, 2011 and the uncertainty about its further administration.
The problems with tax policy and corruption are followed by the problem of the instability of state policy, although its importance dropped from 17% to 12% over the year.
"As forecasted, the importance of inflation and the currency exchange rate, which were topical during the crisis, dropped in 2011. But considering the high level of macroeconomic instability in the country, these factors are very likely to return to top positions soon," reads the report.
According to the survey, the role of inflation dropped from 10% to 7% in 2011, in proportion with tax rates (8% in 2010).
The second five of the biggest problems for businesses includes ineffective state apparatus – 6% (up from 5% in 2010), the instability of local and state authorities – 6% (down from 10% in 2010), access to funding – 6% (down from 9% in 2010), the licensing system – 5% (in 2010 this problem was not mentioned in the poll), and low qualification of labor force – 4% (up from 3% in 2010).
The authors of the report said that in 2011 respondents in various regions of Ukraine faced the same problems (95% coincidence), which was not typical for 2010.
Director of the Foundation for Effective Governance Natalia Izosymova said that in 2011 the foundation jointly with the World Economic Forum for the first time researched all 24 regions of Ukraine, the Autonomous Republic of Crimea, Kyiv City and Sevastopol City. GFK Ukraine polled 2,100 companies.
