Tax incentives should be given those industries, which will drive economy of Ukraine, executive director of Bleyzer Foundation, Oleg Ustenko said during the international debate "Tour of Free Market - 2013", ForUm correspondent reports.

According to the expert, the economy needs incentives, but there are budget constraints. "It makes no sense to encourage many industries at the same time, if there are not enough resources," the economist said.
He said that if the agribusiness industry is point of economy growth, then it can be saved incentives for a certain period, at the same time maintaining competition within the industry itself.

"After all, any breaks and government support violate the principles of competition, and the question arises why this industry has been chosen for given allowances. Throughout the history of our independence, you can see the elements of inter-branch struggle for bonuses and privileges, and this fight is hardly good for the economy. Sectoral interest groups should not compete for it, but fight for the overall progress in their areas of responsibility," the analyst noted.

The expert is sure that the best recipe for the growth of the Ukrainian economy is not to provide tax relief, but improve the investment climate.

"This will allow normally conduct business for everybody at once, and the relevance of preferences and privileges will weaken. All sectors will be under the same conditions of competition, the free market. Moreover, it is inevitable with the signing of the Association Agreement with the EU, which has long been living on such principles," the expert concluded.



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