2017-10-04T16:31:00+03:00 Economy 2024-09-15T12:08:38+03:00

Ukrainian news

Cabinet Approves Replacing Income Tax With Tax Similar To Tax On Capital Outflows

Cabinet Approves Replacing Income Tax With Tax Similar To Tax On Capital Outflows

The Cabinet of Ministers has approved a bill on replacement of income tax with a tax similar to tax on capital outflow.

The Cabinet approved the respective Executive Order at its Wednesday meeting, Ukrainian News Agency reports.

The bill envisages amendments to the Tax Code.

Prime Minister of Ukraine Volodymyr Groysman said that the bill was favored by the government, yet upon a preliminary approval the Cabinet decided to send to the National Council for Reforms for discussion to determine starting from which year to implement the law.

The Prime Minister stressed that, if implemented in 2018, the bill could lead to reduction in the state budget earnings estimated at UAH 40 billion.

Minister of Finance of Ukraine Oleksandr Danyliuk said his ministry could offer a solution to offset the losses from introduction of the bill by way of lowing taxes.

As Ukrainian News Agency earlier reported, the Rada's Committee on Economical, Financial and Legal Policy, the Committee on Fuel and Energy Complex, the Committee on Infrastructure and the Committee on National Security and Defense approved the bill on replacement of income tax with a tax similar to tax on capital outflow.

In June, the Ministry of Finance announced about the intention to replace the income tax with a tax on capital outflow.