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. Last Updated: 07/27/2016

Ukraine Proposes 'Radical' Improvement to Tax Laws

KIEV -- Ukraine's government proposed to improve tax laws in an effort to add funds to state coffers ahead of a parliamentary discussion of the budget next week, a news agency reported Sunday.

The government proposed more than 10 draft laws, including a value added tax, a profit tax, which could bring about 3 billion hryvna ($549.4 million) to Ukraine's budget if adopted by the parliament.

Other proposed tax improvements concerned excise, import and customs duties, a fixed agricultural tax, personal income and real estate taxes, which also were aimed at increasing budget funds, Interfax reported.

Parliament's speaker Oleksandr Tkachenko praised the drafts proposed by newly appointed Prime Minister Viktor Yushchenko and said they could bring "a set of radical improvements'' to Ukraine's tax system, according to the UNIAN news agency.

They actually were not to increase tax rates, but to establish taxes in the unjustly privileged spheres, Tkachenko said.

Earlier this week, the government proposed a zero-deficit draft budget for 2000, which set revenue and spending at 31.46 billion hryvna. It also set 39.13 billion hryvna for revenue and spending of the consolidated budget, which included local authorities' budgets.

The Cabinet also sent an explanatory letter to parliament with a proposal to increase consolidated budget spending for 2000 by 1.26 billion hryvna and revenue by 2.82 billion hryvna.

Ukraine's parliamentary budget committee is expected consider the document and suggest changes before parliament votes on it next week.

A temporary spending bill, approved by parliament in December, guides governmental spending in the interim before a final budget is adopted.

The budget process has been long delayed by the nomination and confirmation votes for a new prime minister following the re-election of President Leonid Kuchma. Yushchenko, the reformist National Bank chairman, who won confirmation as prime minister and restarted the budget process last month, was praised in the parliament as a person, who "really began to solve the problems.''