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Mazepa: Ordinary Ukrainians will pay more. Property taxes in the village will be the same as in the center of Kiev

According to CEO of investment company Concorde Capital Igor Mazepa, after the adoption of amendments to the Tax Code, the private business will go further into the shadows, that will lead to the actual loss of tax revenue.

Mazepa considers the reduction of the unified social tax to be a positive news
Mazepa considers the reduction of the unified social tax to be a positive news

A well-known financier and CEO of Concorde Capital Igor Mazepa thinks that the adoption of amendments in the tax system was implemented in a hurry, although the deputies could have started dealing with it already in March. He said this in a comment to "Gordon".

"It's surprising that our political elite brought the vote of fundamentally important laws for the country to the emergency night meeting. They had 10 months since March in order to intelligently and deliberately do it. But instead they waited until the end, they did nothing throughout the year of 2014 and now have only 2-3 nights to pass the laws "– Mazepa said.

According to him, many of the new rules in the tax law will not work and bring money into the budget, because the business will go into the shadows.

"I think that many of these actions are actually fake. For example, it refers to the increased rent of gas production. Gas production simply can stop private companies, and any increased rent from zero gives zero. This leads to a decrease in the absolute numbers of collecting these taxes. The same applies to alcohol and tobacco taxes . Since 2010, the alcohol tax increased by 80%, while the return of excise taxes increased by only 10%, which is even less than inflation, so in real terms it fell, at the same time 40% of the market went into the shadows. Normal honest business will go further into the shadows, which consequently will lead to the actual loss of tax revenue, "– the financier noted.

"I think that many ordinary Ukrainians will pay more. It concerns the property tax in rural areas, which will be the same as in the center of Kiev. It concerns the abolition of subsidizing bus transportation of children to schools. It concerns paid secondary education and so on. But it doesn’t concern oligarchs, "– Igor Mazepa added.

As a positive change the expert sees the decrease of social security contributions from salaries, which will allow legalizing incomes.

"The reduction of the unified social tax is really positive news. I think most of shadow wages are likely to come out of the shadows," – Mazepa stated.

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