The decline of a single social contribution rates in Ukraine is quite possible, – Klymenko
To decline of a single social contribution in Ukraine, it is necessary to carry out a reform of universal declaration of incomes, which is fully developed and ready for implementation. Oleksandr Klymenko – ex-minister of Revenue and Duties of Ukraine – wrote about it on his official Facebook page
According to him, meanwhile, the new leadership of the tax administration offered “strange version of the tax amnesty”, which actually makes the entire operating business in Ukraine the hostage of tax authorities and do not encourage the transparency of the tax system and the renunciation of wages in envelopes.
In addition, Klymenko does not observe the improvement of the situation related to the collection and administration of a single social contribution (hereinafter – SSC).
“While the leaders of the Tax Service are competing with each other in the controversy about who have close more “envelopes” and “buried” it in tax gaps, a single social contribution (which is also controlled by Ministry of Revenue and Duties) is forgotten and abandoned.
Nobody has seen a decree about creating of the State Fiscal Service (neither in official nor even in unofficial sources), as well as decree on the appointment of the heads of the State Fiscal Service “- says ex-minister.
Oleksandr Klymenko also notes that there is no single solution for the situation with the SSC. “It is offered either to cancel it, or to cut. However, no one knows how and where to find this expansion joints.
It is not funny cause SSC – it is pensions and various social benefits, including unemployment benefits. In the light of the critical situation in the East and the flows of the IDPs to other regions, it is clear that these funds, especially unemployment benefits, will come useful for the state in the nearest future. It is impossible to spend credit IMF funds for this purpose: Fund inspectors clearly watch for its intended use. I think none of the new leaders of the state would like to repeat the story of Tymoshenko and money, which she put from the sale of quotas for the Kyoto Pension Fund, “- says ex-minister, and notes that work related to the SSC should be a priority of Ministry of Revenue and Duties.
“He recalled that in early June the press office of Ministry of Revenue and Duties reported that UAH 74.4 billion of SSC were collected during the January-May 2014 and indicatives of Ministry of Finance were executed on 102.4%. At the same time, according to the Ministry, UAH 14.6 billion were collected in May. It is UAH 300 mln more than in May last year. Klymenko says: «if you look at the statistics from a different angle, the situation will not be so optimistic».
“UAH 14.6 billion, which were collected in May, is UAH 1.4 billion less than in April, when a monthly fee of SSC was UAH 16 billion.; if you look at the statistics in the context of the year-to-year, you will see that UAH 74.4 billion of SSC, which were received on June 1, 2014, is UAH 116 mln. less than the indicators of June last year (UAH 74,5 billion). In May indicatives of the Ministry of Finance, corrected by the sequestration in March, were executed on only 98%. It means that 2 % of the plan were not collected. You can be proud of the growth of SSC income during the first five months, if you close our eyes to the fact that the actual growth rate of the fund remuneration amounted to 2.7% during this period,”- says Oleksandr Klymenko.
According to the former minister of Revenue and Duties is not in a hurry to work on repayment of more than UAH 3 billion debt, which was not paid by the enterprises in state funds. This debt has a monthly upward trend – it has increased by UAH 0.7 billion since the beginning of the year.
“If the leadership of the Ministry actively fights with the “envelopes”, why does it miss such an important field related to the salaries in envelopes? Should society become more conscious, because the payment of wages in an envelope – it’s not the European way”- asks Klymenko.
Also, ex-minister says that the reduction of SSC rates is quite possible. Compensators for this step can be incorporated in the improvement of the mechanisms of declaring incomes, which were worked out by the Ministry under his leadership:
The reduction of SSC rates is quite possible. During my work in the Ministry, we were studying this issue. We came to the conclusion that the only real compensator, which would allow to reduce the burden on the wages fund, could be the reform of universal declaration of income. It is fully worked out and ready for implementation. However, it seems to be postponed “indefinitely”. It was created by ” criminal power “. I will not be surprised if it is presented as the know-how of the new leadership soon, “- says Oleksandr Klymenko.
Ex-minister does not observe the improvement of the situation related to the collection and administration of a single social contribution.
By the end of last year, Ministry of Revenue and Duties was ready to implement unified reporting on SSC and income tax of individuals. Furthermore, it was ready to introduce electronic office of the taxpayer.
“Business was expecting for this step. We were working on this form together, discussing options for reducing the frequency of payments. This is, by the way, a factor that nowadays essentially pulls down Ukraine in a tax ranking Doing Business”, – Klymenko writes, adding that “new leadership of the Ministry of Revenue and Duties does not want to deal with the business and its interests. ”
“It seems that all their thoughts are occupied only by «how to divide between them and the floors in the Ministry’s field of influence in the region”, – concluded the Minister.
Link to source: Korrespondent.net