Samopomich work on reduction of the unified social tax was praised by the President during the National Council of Reforms

When opening the National Council of Reforms on 25 October 2016, the President of Ukraine Petro Poroshenko reported on Ukraine’s high ranking in World Bank’s Doing Business-2017 rating in terms of taxation.

According to the President, the most effective reform in this area was an unprecedented reduction of the unified social tax, whereby Ukraine moved from 107th to 84th position in the ranking in the field of taxation.

These positions have been calculated in accordance with the calculation methodology operating in 2016.

However, with the current calculation methodology the position of Ukraine remained almost unchanged; this is due to an increase in the list of indicators that affect the overall rating (VAT refunds, tax audit, and administrative appeal).

We are grateful to the President of Ukraine for the appreciation of the activities of the Samopomich faction in the Verkhovna Rada of Ukraine. In the past two years we have been consistently seeking reduction of the burden on the payroll fund and have initiated the introduction of a unified social tax at the level of 22%.

It is worth remembering what the price for achieving this was – when in December 2014, Oleh Bereziuk and Andriy Zhurzhiy literally had to make Prime Minister Arseniy Yatsenyuk and Chairman of the Verkhovna Rada Volodymyr Hroisman listen to their political arguments in order to convey the importance of reducing the payroll taxes for the Ukrainian economy.

We thank Natalia Yaresko, who being the Minister of Finance in preparing the budget for 2016 did everything for this reform to be implemented, and together with us opposed to the attempts to kill the reform for the sake of carving-up additional 60 billion hryvnias.

The faction continues to strive for the elimination of the unified social tax starting from 2018, for pension reform and for the transition to the scheme of financing pension payments directly from the state budget.

Andrij Zhurzhij
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