Ukrainian President Viktor Yanukovych considers appropriate to consider the possibility of a return of some local taxes and fees in the course of the local government reform.

"The real resource for regional investment development in 2013 should amount to about 16 billion UAH, which is 20% more than in 2012. The local budget should be filled by the maximum possible amount of resources. Everyone should pay local taxes. The budgetary system of Ukraine will be decentralized to expand the material base of municipalities," Yanukovych said.

According to him, first of all, amounts of tax revenue inflowing to the city budget are to be increased. In addition, a more transparent formula for the calculation of intergovernmental grants, subsidies from the state budget should be worked out on the basis of objective needs of the local authorities: "This will reduce the risk of corruption in the implementation of inter-budget relations".

In addition, according to the President, the government plans to improve the regulatory framework to attract extrabudgetary funds to local governments, particularly from new borrowings and the use of public property.



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