Tetiana Ostrikova on the economic fraud of the authorities

Despite the government’s loud statements about the declared economic reforms, there is still no political will to implement real reforms. As a matter of fact, most frequently the economic bills announced by the government are one-sided and give no answers to the question of which economic sector is the priority for Ukraine and how to increase the growth of the economy naturally with the help of the domestic investor.

Tetiana Ostrikova emphasizes, “One of the requirements of the business sector towards the authorities is to put an end to the pressure exercised by the law enforcement bodies.

The government declares the adoption of a bill on the financial investigations service; however, the very bill has not yet been submitted to the parliament and does not even have a registration number. My bill “On Financial Police” – which would create one and only body of financial investigation that would replace and eliminate the economic divisions of the Security Service, the National Police, and the Prosecutor General’s Office, and would finally liquidate the tax militia, which would resort to analytical, not forceful means – has been pending in the parliament for two and a half years without further consideration. There is no political will.

We see one-sided short-sighted bills that do nothing – radiological control is passed from one body to another, but we still hear no answer to the question of how to stabilize the economy. How to make sure that its hidden reserves start working in order to ensure the growth of not 2-3%, but at least at the level of our neighboring states – for example, in Romania, there is 6-8% of GDP growth. Otherwise, the question arises: how is the government going to pay off the debts to the IMF, the biggest amount of which is to be paid back in 2019? It will not be possible to do this at the expense of these one-sided changes, where one word is replaced by another, one body by a different one.”

Tetiana Ostrikova considers the unsystematic approach to the economy to be a proof there is no political will of the pro-government factions to introduce real reforms and to hear business representatives. And the talks about 35 economic bills from the government, which should be aimed at regulating the country’s economy, are nothing more than declared intentions so far.

“I believe in my core that social standards and, in particular, minimum wages and pensions should grow not due to the fact that the government artificially establishes some indicators, without real economic grounds for this, but due to the fact that enterprises work properly, that new jobs are created, and the budget receives more revenues.

According to economic studies, the largest black hole in the state budget of Ukraine is formed because of the withdrawal of funds to offshore jurisdictions. By the way, these are by no means small businesses that exploit offshores, these are large businesses and those connected with the authorities. So, first of all, I would concentrate on elimination of this loophole, because we are talking about tens of billions of currency assets leaving Ukraine. There are simple recipes of how to overcome this problem, and these recipes must be implemented through the Tax Code. This is the cancellation of the income tax and its replacement by the tax on the withdrawn capital, as well as the taxation of the income of foreign companies in Ukraine which are controlled by Ukrainian citizens. Then it will be possible to talk about monetary liberalization. This is a way to significantly supplement the treasury.

And the second problematic issue is the customs, through which another unofficial state budget of Ukraine “runs”.

One might ask – why all the things I have been talking about for years do not change? It is all very simple. Because those who are governing our country are making money from this all,” concludes Tetiana Ostrikova.

Tetyana Ostrikova
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