President Victor Yushchenko on Wednesday said the imperfection of Ukraine’s tax system was one of the biggest problems of the national economy, making it function illegally and impeding social reforms.

Yushchenko promised not to sign a new tax code if it did not satisfy the country’s business leaders, urging them to contribute to its draft. “I would like you to co-author this code,” he said, adding that the government had not been able to adopt it over the past five years.

The President said the VAT rebate issue must be resolved to reform Ukraine’s tax system. “We must together find the answer to this question. It is almost mathematical and can be found through a new tax code which will appear in parliament in a few months,” he said.

Yushchenko said Ukraine had one of the world’s worst fiscal systems because of high taxes and red tape, according to a report by the World Bank, as President’s press office informs.


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