IMF recommended Ukraine to wait with tax cuts

The International Monetary Fund recommended Ukraine to postpone the introduction of the Tax Code provision, which provide for reduction of some taxes at the beginning of 2014.

This was discussed during a meeting with leaders and members of the Parliamentary Committee on Taxation and Customs Policy, the press service of the parliamentary committee reported.

"The head of the IMF mission to Ukraine Nikolai Georgiev and the representative of the IMF in Ukraine Jérôme Vashe believe that the reduction of VAT and income tax rates, planned for 2014, should be postponed," – quote from the statement.

In turn, the chairman of the committee Vitaly Homutynnik said that if such proposals are received from the government, the committee is ready to consider them in view of the difficult budgetary revenue projections for 2014.

He did not rule out that such a bill could be supported by most MPs.

The Tax Code provides for the reduction of the VAT rate in 2014 to 17%, of income tax – to 16%.

Source – "Ukrainska Pravda".