Taxation system: Business Supports Reforms!
On March 29, within the framework of the East Invest 2 program, the final event, the Ukrainian European Tax Reform Day, was held. In addition to representatives of relevant ministries and services, business associations, international consulting agencies, experts from the Oil and Gas Association of Ukraine, the head of the Tax and Customs Policy Committee Nelia Privalova and the head of the Regulatory and Legal Committee Alexander Gvyazdovskii visited this event.
The main message of speakers’ speech was the need to integrate European approaches to tax policy into Ukrainian legislation. As Ivan Miklash, co-chairman of the strategic advisory group under the Prime Minister and the Verkhovna Rada of Ukraine emphasized, tax reform can become effective for the country only if it is carried out in a package of systematic reforms in all fields. This involves financial stabilization, which allows obtaining business access to credit resources on acceptable terms, and public finance reform: transparency and efficiency of using the expenditure part of the budget, and issues of financial independence of territorial communities, increasing the responsibility of local authorities for budget income and spending, as well as pension, land, labour market reforms, etc.
With regard to tax reform, the European approach is to transfer the load from direct taxes (personal income tax, income tax) to indirect taxes (excises, VAT) and to improve the fiscalization of cash flow.
For its part, the Oil and Gas Association of Ukraine supports a comprehensive approach to the transformation of the country’s tax system and its transformation in accordance with European standards. The Committee for Taxes and Customs Affairs of the Oil and Gas Association of Ukraine, in particular, is engaged in forming proposals on state regulation of the oil products market and tax policy in this area, which are closely interrelated. Building a more effective system of tax administration and reducing pressure on business will help the oil and gas market move towards more civilized business rules and reduce the shadow sector of the economy.