Alexander Minin told about the tax system in Ukraine on radio “Golos Donbassa”

December 02, 2016

Yesterday Alexander Minin, Senior Partner of “KM Partners”, appeared on air of “Golos Donbassa” radio in the program “Price of the question”, where he discussed the tax system reform in Ukraine.

Alexander outlined the main issues on taxation, namely: tax burdens on salary of citizens, local taxes, including transport tax, VAT and PIT, the problem of a large number of criminal proceedings under Art. 212, etc. The expert told, on what the system operation depended and commented on that we could act in order to change the situation.

Alexander Minin noted that today tax was not a pension asset, as funds were not arrining for investment to provide pensions in the future, but they were only being spent. The Pension Fund is funded in significant part due to charges from the overall incomes of the budget.

The expert identified “taxes” as such were taken away from citizens by force. He explained the difference between direct and indirect taxes: the direct tax was paid from own funds, wealth, using own incomes; indirect tax was a burden that should be shuffled to others. Mr. Minin stressed that the most important point was that one lost the desire to earn, when most of what you had was being seized. Because of this situation, incomes are decreased and the big motivation “to go underground” appears.

Today, the main task which was designated by the expert was to settle the issues relating to taxation at the legislative level, since very often contradictions arose, for example, between the provisions of the Tax Code and the Constitution of Ukraine. Alexander sees problem solution in interaction of society with the state, because it is the society which is empowered to influence. The expert advised all to be interested in taxes, because “ignorance of the tax is no excuse to evade them”.

To listen to the program on the radio, please follow the link.