Businesspeople have called on the Ukrainian authorities to introduce tax reform as quickly as possible and support a number of the provisions put forth by the parliamentary committee for tax and customs policy. At the same time, entrepreneurs are concerned that there is no consensus on fundamental changes to the simplified taxation system. Representatives of the business community do not support the preservation of VAT accounts and the deposit system they use, when assets are simply “frozen” and do not work for the real economy. They insist on reducing the burden on the payroll fund, and also raised other issues. These were the subjects discussed at a round table meeting entitled “Prospects for the Development of Small Businesses in the Context of Tax Reform.”
“Dragging out the modernization of taxation causes uncertainty in the formation of a budget, as it has been declared that the state budget for 2016 must be formed on a new tax base. This destroys the remaining investment climate in Ukraine, and businesses are unable to give their economic outlook for 2016, and draw up a high-quality financial plan, develop tactics and strategy on the domestic and foreign markets,” the participants of the round table meeting said in a joint statement.
It was said that the problems of the Ukrainian economy should be solved by improving the business climate rater than by increasing fiscal pressure. And this is the way for searching compensators for budget revenues. Administrative, fiscal methods will have a negative, reverse effect in the sectors where households’ solvency is too low and businesses operate in adverse conditions.
Every effort should be made to keep the simplified taxation system, as it is the main incentive for private entrepreneurs to do own business. Small- and medium-sized businesses as well as self-employment is now a lifeline for people, as Ukraine’s backbone industry is in a plight, which, along with necessary processes of economic modernization and diversification of markets, becomes a cause behind layoffs. It is a small-size business that is able to prop up economic activity, solve the problem of unemployment and supply goods and services on markets. Resisting this at the state level is equal to suicide.
Experts and entrepreneurs stressed the need for a real reduction in taxes and fees, simplification of administration and the introduction of personal responsibility of fiscal officials for inappropriate actions against entrepreneurs.
