The Government proposes imposing a 5 percent tax on income earned by citizens from deposits worth over 200,000 UAH. Prime Minister of Ukraine Mykola Azarov said this today during a press conference on "Tax Code - for the welfare of citizens and innovative economic development." Moreover, these funds are not subject to deposit, only the income from them.

Mykola Azarov noted that 90% of Ukrainian citizens have deposits that are less than 200 thousand UAH. "That is an idea expressed by President Viktor Yanukovych. He urged the Government to reduce taxes, but also to transfer most of the burden on the wealthy citizens," said the Prime Minister.

The Head of Government also noted that the current flat rate of 15 percent on personal income of up to ten minimum wages remains in the Tax Code, while for those whose incomes exceed that limit, the rate will be increased to 17%.

In addition, according to Mykola Azarov, it has been proposed to impose a tax on properties, which will deal with very wealthy homes. "This item is quite liberal, it is introduced with properties over 100 square meters in area in the city and over 200 square meters in rural areas," he explained. Thus, as noted the Head of the Government, over 95% of our citizens will not pay this tax, as "those 5% who have large apartments, big houses will pay 10 UAH per square meter."

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