The Committee on Industrial and Regulatory Policy and Entrepreneurship held the Hearings "Economic Reforms: Current State and Prospects of Ukrainian Business"

25 June 2010, 13:29

Publish

The participants of the hearings focused their attention on the Draft Tax Code adopted by the Parliament in the first reading.

 

Natalia Korolevska, Committee Chairperson, emphasised that "the parliamentary Committees and associations of business representatives introduced more than one thousand amendments to the draft tax code submitted by the Government." According to the Committee Chairperson, the draft is to be recalled for the formation of a new document elaborated by the expert group involving business representatives and branch associations.

 

According to the experts of the National Institute of Strategic Investigations, the main problems of the Ukrainian tax system are the great number of fiscal charges, considerable cost and time expenditures and excessive tax burden on the labour compensation fund. Excessive fiscal orientation of the taxation policy is one of the factors that caused decline in business activity in Ukraine which, in its turn, bore extra negative influence on GDP dynamics, industry and investments.

 

In the course of the sitting it was declared that under the conditions of the critical misbalancing of the public finance sector, it seems impossible to implement the whole range of the taxation reform measures. The only possible variant in this situation is a gradual implementation of an efficient tax reform.

 

The participants emphasised that the Draft Tax Code contained both progressive steps and several debatable norms that contradict the tasks and priorities of the tax policy under the conditions of the post-crisis economic renovation.

 

The participants of the meeting discussed several legislative acts with problematic implementation.

 

Several issues shall be settled while implementing the requirements of the Law "On Principles of the State Regulatory Policy in the Economic Activity Sector."

 

Reporters deem necessary to adopt the Law "On Register of the Licensing Documents in the Economic Activity Sector."

 

In the course of the sitting they discussed the necessity of introducing amendments to the Law "On Licensing of certain Types of Economic Activity" regarding the curtailment of economic activity types subject to licensing, and conduct of governmental policy related to a unitary licensing system.

 

Adjourning the sitting, N. Korolevska emphasised that the expressed amendments, remarks and proposals would be summarized and used in the course of further legislative activity.