Economics

Financial Times: Kyiv is trying to press on its oligarchs

29 december 2014 | 13:22

The publication writes that the new state budget can bring Ukraine closer to getting a new IMF loan in January.

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The new budget can bring Ukraine closer to getting a new IMF loan.
Ukraine, exhausted by recession and war, tries to improve its tax system by means of easing pressure on SMEs and increasing taxation of its oligarchs.

That is how Financial Times writes about the Ukrainian state budget approved last night. The columnist of the edition writes that Kyiv also increased customs duties, trying to cope this way with a balance of payments' crisis.

Read more: Verkhovna Rada abolishes Ukraine's "non-aligned" status

"The approved bill will also strengthen budget revenues for 2015, giving hope to unlock billions of government assistance from the IMF and other Western donors" – says the article.

The newspaper also reminds that the IMF has opened a $ 15 billion loan program for Ukraine, but this money is not enough because of the war in the Donbas.

"The debate about changes to the Tax Code has lasted for 10 hours in the Ukrainian parliament. This was exhaustion for the Ukrainian pro-Western coalition. The changes are intended to support small and medium businesses, bring a significant part of the economy from the shadow and increase pressure on oligarchs, which was called a fairer tax burden redistribution by the government" – concludes the article. Columnist writes that the Ukrainian government is trying to prevent tax evasion through offshore taxation.

Read more: Ukrainian Parliament approves state budget for 2015

After working all night on Monday, the Parliament will meet again only on 13, January.

Source: ZN.UA

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