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Taxes which Don’t Kill, – Volodymyr Dubrovskyi for “Dzekralo Tyzhnya”

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Center CASE Ukraine’s senior economist Volodymyr Dubrovskyi launched the series of articles for “Dzerkalo Tyzhnya” weekly, describing the proposals of Reanimation package of reforms for “restarting” the tax system. The new system is aimed at gathering the necessary income and at the same time avoiding arbitrariness, minor control, substantially decreasing possibilities for corruption and abuses and also considerably simplifying the process of paying taxes.

The first article from the cycle – named “Taxes which don’t kill” – tells about the general concept of tax reform, particularly, about VAT modification, two times reduction of social security contribution, introduction of the tax on distributed income (instead of income tax), modification of rental payments and excises with the aim to guarantee maximum revenues, implementing 15% rate of tax on individuals’ income.

The article “Income tax” proposes to replace the income tax by the tax on distributed income with the moderate rate of 10-15%. “It would allow to stop controlling spending and revenues, to abolish tax accounting and even to directly prohibit tax inspectors to tamper with the documents”, writes the economist.

June 16, 2014