Rising poverty threatens reforms in Ukraine - the head of the Ministry of Finance

26 April 2015 13:02  3697440 098444
Rising poverty threatens reforms in Ukraine - the head of the Ministry of Finance

Real incomes of Ukraine's citizens have decreased by 10%, the poverty rate has increased by 30%, which threatens the effective economic reforms.

This was stated by the Minister of Finance of Ukraine Natalia Jaresko.

"Support for the poor is not only a social task, but also necessary to support reforms," - she said on Saturday at the symposium "Ukraine: Ridding of the post-Soviet legacy."

Jaresko stressed that unshadowing of the economy will be a significant resource for the budget and the Pension Fund.

The head of the Ministry of Finance announced that in 2016 it is planned to launch a new simplified tax system promoting the legalization.

According to her, due to the introduction of transfer pricing and electronic VAT administration, the government intends to reduce the outflow of oligarchs' funds abroad and tax evasion.

Also, the head of the Ministry of Finance said that the Cabinet is willing to admit their mistakes.

According to her, the situation with excessive rent payments for oil and gas would be resolved by July 1, and a new system of rent payments in this area would be introduced on January 1, 2016.

"When we make mistakes, they must be corrected," - Jaresko said.


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