The Reanimation Package of Reforms has noted escalation of the confrontation between the legislative and executive branches of power as regards discussion of amendments to the tax law. Unwillingness to listen to the arguments of different parties and the wish to lobby a particular draft law, resorting to manipulations and distortion of facts, leads to public distrust to this reform.
We call on all the participants of the project to stop destructive confrontation and participate in collective expert discussion of the tax reform and the ways to achieve a well-balanced budget. We believe that development of a common vision and a coordinated draft law will provide a possibility to obtain utmost support of the public, businesses, and international institutions supporting Ukraine financially.
The Reanimation Package of Reforms emphasizes that the draft law (Reg. No. 3357) implements a number of positive changes to normalize relations between businesses and fiscal bodies, improve tax administration, reduce the risk of corruption during audits and VAT refund, introduce electronic services, etc. We think that the finalized draft law shall provide for these changes. We also stress the importance of decentralization and consider it unacceptable to introduce amendments that shall impede this process. We would like to emphasize that the reform shall not be implemented in violation of the principles of the Tax Code.
We are also convinced that implementation of the tax reform is impossible without cutting down the budget expenditures, as their large amount is a burden for economy (52-54% of the GDP, which gives Ukraine the ninth ranking in the world by the redistribution of the GDP through public finance). We call on the Cabinet of Ministers to secure implementation of the Cabinet of Ministers Action Plan in part of reducing the share of expenditures of the public sector in the structure of the gross domestic product by 10%.
We think that achievement of mutual understanding regarding liberalization of the tax system combined with fiscal responsibility shall guarantee that the State Budget is balanced, as well as help the economy emerge from a deep crisis.