Mykola Tomenko: It is a Paradox that Half of the Ukrainian Economy is ‘in Shadow´
At the briefing in the Parliament on Friday, Mykola Tomenko, Deputy Chairman of the Verkhovna Rada of Ukraine, stated that the Government should make sweeping changes in the plans concerning economic reforms. He deems necessary "to funnel assets out of the shadow instead of devising new taxes." "A new approach to the pension reform should be adopted, and the shadow economy should be liquidated," he stressed.
According to the figures of the latest opinion poll conducted by "Ukrainian Democratic Circle" agency on the request of the Institute of Politics on 29 January - 7 February 2011, most respondents (42,3%) declared that their acquaintances have to receive their salary (partially or completely) off the book, while 4,6% refused to answer. "Thus, 47% of the Ukrainian citizens admit receiving wages off the book," the Deputy Chairman of the Verkhovna Rada of Ukraine stated. He considers it "a key to the necessary reforms." "The change of the taxation scheme that should promote employers to pay salary officially, together with the employers´ responsibility for the payment of off-the-book wages are the primary steps," M.Tomenko stressed. "The present situation is as follows: the Government suggests loading the official part of the economy, while the shadow economy is growing."
The Deputy Chairman summed up, "It is a paradox that half of the Ukrainian economy is ‘in shadow.´