“It’s very annoyingly to me that cooperation with the authorities concerning preparation of the joint Draft Tax Code has not turned out. Unfortunately on the exit we will receive the Tax Code for officials instead of the one for businessmen. It disturbs me that nobody has seen the Draft completed by the Government by this time and it hardly will add to the tax reform quality”, – the People’s Deputy has specified.
Within the basic essential positions of his own Draft Tax Code Mykola Katerynchuk included: “the simplified tax system remains unchangeable as the authorities should assist survival and development of small and medium business in the crisis conditions (increasing profits up to 1 million UAH); the tax administration’s new philosophy towards the Value Added Tax as conversations on tax reform are impossible without it. In spite of the authorities’ repeatedly declared its criminal character they continue to use it. This Draft Bill was not perceived neither by Yushchenko nor Timoshenko for this reason. As well as Yanukovych they could not deny the VAT which was turned into the political tax: we will consider to whom it is necessary to be returned; the VAT of unilateral action introduction to finish “recoils” and to provide free export development; reduction of the VAT tax rate from 20 to 15 percent and the profit tax from 25 to 20 percent throughout 5 years on 1 percent annually; introduction of the privilege for investments into fixed capitals (at production means import the VAT would not be paid at all); essential increase of amortization norm, 50 percent of the profit tax would be possible to use on the fixed capital renovation; ecological taxes introduction urged to restore the environment ecological conditions; obligatory tax amnesty providing the basis for tax base expansion“.
“We must create new economy rules, support small and medium business and give businessmen new possibilities to feel their usefulness to the state. Besides we offer a number of law changes in the state tax service where we try to work out the responsibility balance: the tax inspector should be responsible for tax laws infringement equally with the entrepreneur – with all his property. If the businessman proves in the court order that the inspector has made infringement served as the harm reason for the businessman the guilty person should answer with his house, his car and private means. And off-schedule checks should be passed on a court decisions only”, – Mykola Katerynchuk has underlined. – “We should give the chance to businessmen not to be afraid to co-operate with tax administration, and for the inspector – to learn to be afraid to beat out the last businessmen money to pursue the receipts scheme, the Ministry of Finance had lowered”.
The author of the Draft Bill underlined that “our bill feasibility report would allow to increase input in the budget by 150 billion UAH with the liberalization of taxes collecting approaches».
“The new power has declared reforms implementation. The offered changes public utility should become the product of reforms. The way chosen by the government is dangerous. Basically we will be being convinced to vote for «the cat in a poke” during this week. We will be convinced to vote for the rules which will hardly assist equally to business development both big and a small-scale”, – he added.
The Press-service
the European Party of Ukraine