The leader of the Batkivshchyna party, former Prime Minister of Ukraine Yulia Tymoshenko has said that only balanced and real tax reform will reduce the level of the shadow economy.

"To legalize salaries so that they’re not paid under the table, only one thing must be done - remove unnecessary taxes payroll and then no special laws will have to be adopted," Yulia Tymoshenko said in her speech at the Ukrainian Summit 2011 "Can real reform be delivered?", Tymoshenko's official website reported.

The former prime minister called Mykola Azarov’s government initiative on the development and adoption of the law on legalization of wages surreal.

In her opinion, only by reducing the tax burden on payroll taxes will the number of employees paid illegally be reduced. "Then it automatically comes out of the shadow into the light, and people themselves will be interested in paying wages openly and not in envelopes," Yulia Tymoshenko added.

As reported, Deputy Prime Minister Serhiy Tigipko said the government plans to unveil a bill on legalizing wages that will boost revenue inflows to the pension fund.

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