The Government today will consider and adopt a draft Tax Code of Ukraine, which is one of the directions of the reform program of the President of Ukraine. Prime Minister of Ukraine Mykola Azarov said opening the meeting, Cabinet's press office reported.

"There were a lot of talks about its necessity. Probably every political force in its election program provided an important place for the Tax Code. And only now, through joining of efforts of the Government, experts, businesses, MPs of the coalition 'Stability and reforms' we have a real opportunity to get the 'economic constitution of the state,'" Mykola Azarov emphasized and added that the country had been waiting for this document during all years of its independence.

The Prime Minister said that being in crisis, the Government managed to reduce the fiscal burden on the economy and encourage the modernization of production, innovations and investments.

Thus, according to Azarov, under the draft document significantly reduces the number of national taxes: from 29 to 17; 10 local taxes and duties are cancelled and it is also provided the gradual reduction of corporate income tax rate, which is credited to the state budget: from 25 per cent to 20 per cent in 2011 and further annual reduction by 1% - till 17% in 2014.

The Prime Minister has said that accelerated depreciation will be introduced as one of the main incentives for capital renewals as well as mechanisms to stimulate innovation and investment development.

Mykola Azarov has said that we pay great attention to promotion and development of small enterprises. Thus, we have serious reduction of tax accounting expenses, including decreasing the number of reports submitted to tax authorities, harmonizing tax and accounting, etc.

According to the Prime Minister, one of the most important components of the draft Tax Code is to establish clear and transparent mechanisms of interaction between fiscal authorities and taxpayers, simplified administrative procedures and optimize.

"To summarize, we have abandoned all obsolete and incapacitated. This document is innovative. This is a real tax reform that fundamentally improves the investment climate in Ukraine, raises our country’s rating of economic freedoms and attractiveness for business", Azarov summed up.

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