On Thursday, 24 December, the Verkhovna Rada of Ukraine has adopted a package of government laws that will reduce the tax burden in the economy, increase the efficiency and targeting of public expenditures through the introduction of structural reforms in various sectors of the government’s presence, enhance the quality of public services.
In particular, the Tax code of Ukraine was amended in order to minimize the tax burden in the economy. It is envisaged the cutting of a single social contribution (SSC) rate to the single rate of 22%, abolishing imposition of SSC on income of individuals.
From 1 January 2016 the special import duties are abolished.
Also the amendments provide for the tax exemption of international technical assistance, simplification of tax administration through a transparent system of VAT refund.
The adoption of the package of bills was also crucial to balance the state budget, which is an important component to obtain the next IMF tranche and the associated international financing aimed at maintaining stability, predictability and economic growth of the country.
Officials of the Ministry of Finance of Ukraine note that the compliance with the principles and objectives under the Extended Fund Facility program of cooperation of Ukraine with the IMF "will be analysed by specialists of the International Monetary Fund.