IMF Delegation Discusses Refinements To Ukrainian Tax System

by Ulrika Lomas, Tax-News.com, Brussels

01 July 2009

On June 24, 2009, delegates from the State Tax Administration (STA) of Ukraine and officials from the International Monetary Fund continued work on improving the efficiency of Ukraine’s tax structure and mitigating any reductions in revenues stemming from the financial crisis.

Commenting on the importance of the IMF delegation’s assistance, the Deputy Head of the STA Serhii Lekar said: “For us it is important to immediately take all measures in order to mitigate impact of the world financial crisis on Ukraine’s economy so experience exchange will be very useful. We are keen on the ways taken by other world countries and results achieved in curbing the fallouts in economics".

According to Serhii Lekar, the major areas the STA wishes to tackle with the assistance of the IMF, are:

• Enlarging Ukraine’s taxation base;
• Improving administrative efficiency;
• Simplifying procedures; and,
• Developing services for taxpayers, including engaging them in discussion on creating favorable conditions and ensuring complete payment of taxes.

“We have to be partners with business, as only through joining our efforts we can overcome the crisis,” Lekar opined.

The meeting focused on Ukraine’s budget deficit, revenue figures and overdue taxes. The IMF suggested measures which could further strength Ukraine’s tax culture and cut red tape as well as looking at the problems with timely tax payment.

According to Lekar, the IMF delegation was particularly interested with the STA’s initiatives with regards improvements to tax legislation, the administration of Ukraine’s largest taxpayers and in the area of Value-Added Tax.

Recommended