The Cabinet of Ministers unanimously rejected the draft law on luxury tax due to its purely fiscal nature and imperfect standards, Prime Minister of Ukraine Mykola Azarov wrote on his personal website, UKRINFORM reports.

"I want to calm down everyone who was troubled by rumors of the so-called 'luxury law' - the Cabinet on Monday unanimously rejected the relevant bill, which was of a clearly fiscal nature and contained not well thought out rules," the head of the government wrote.

The Prime Minister also announced the government's decision on improving the luxury tax bill. According to him, the developers distorted the very concept and content of the law.

"We set for it primarily not fiscal tasks, but the principle of social justice: the rich should share with the public the part of their income they spend on luxury," Azarov said.

Therefore, he said, taxing all the apartments of over 120 square meters and houses of more than 250 square meters, as well as sheds and garages, is out of the question. That is available to the middle class that must be fully supported as a generator of economic and social progress, the Prime Minister noted.

"There can be no talk about introduction of the rules of the law that we were offered. Thus, the law was returned for revision," Azarov says.

"Exactly luxury items shall be taxed. The things without which one can basically live. And what has functional low-cost analogs. There is a fair criterion for determining the object of such taxation. Its cost," Mykola Azarov explained.

The law will apply to the really rich people and only their expenditure on personal consumption of different types of luxury, the Prime Minister underscored.

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