Premier Azarov tells Tihipko to draw up structural reforms and stabilize balance of payments

March 15, Premier Mykola Azarov instructed his vice premier for the economy, Serhy Tihipko, to go ahead with implementing the austerity program.

Tihipko will also prepare proposals to support the country’s exports and stabilize its foreign trade balance of payments.
Late March 15, Serhy Tihipko faced a panel of journalists in a live TV talk show on the ICTV.

He said a 5-year tax holiday is likely to be declared for small businesses in a month.
 “We are working to declare tax holidays for small businesses. So far, tax holidays for medium-sized businesses are not on the agenda. We believe we can give small businesses a 5-year holiday,” he confirmed.
If Verkhovna Rada pass appropriate laws, the tax holiday can be implemented in a month, he said.
The VP also promised not to raise the retirement age.
“To raise the retirement age for women is the last thing we want to do now,” he said. Simultaneously, he criticized as too early the case when members of some professions can retire at 38 to 40 years of age.
High pensions are most likely to be cut to equal 10 to 12 minimum pensions, Tihipko said. 
To generate more budget revenue, Tihipko proposed to impose adequate taxes for businesses, saying “we have to introduce acceptable taxes and only then demand that all taxes be paid.”
 “If we play fair with businessmen, we can be tough with them on taxes. Some of them may even go to jail if they continue to evade taxes,” he warned.
“I put up two conditions for my work as VP for the economy: to be able to continue my political project and to go public,” Tihipko stressed, adding “No one will be able to ban me from going on television to expound on my proposals.” 


 

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