Klymenko: In terms of taxes Ukraine has not raised, but fell in doing business by 1 position
On October 25, it was published a new ranking of ease of doing business – Doing Business-2017, where Ukraine took the 80th place. Earlier the President Petro Poroshenko declared that Ukraine has significantly improved its position during the last year. In particular, it has risen by 73 points in the ranking of taxation called Paying Taxes.
In fact, Ukraine has moved from 81st to 80th position in the ranking. Moreover, it has lost one position and moved from 83rd to 84th place in terms of taxation. Oleksandr Klymenko – the politician, leader of the «Uspishna Kraina» party – wrote about it on his Facebook page and analysed the rating. He explained: “In fact, the World Bank published the rating, which is based on adjusted data of 2016. Therefore, I am afraid to upset the President, in other words – even in purely formal rating – nothing has changed”.
In reality experts of the World Bank and IFC fixed only two positions, where it can be observed the biggest growth. It comes about the “Protection of minority investors” (plus 31 points) and “Enforcing Contracts” (plus 12 points).
According to Oleksandr Klymenko, these “pseudo reforms” actually means the following. “Protection of minority investors means that nowadays, interested directors and shareholders are excluded from the vote on approval of the transaction, if there is a conflict of interest. Ukraine has simplified the process of contract enforcement by introduction of a system that allows you to pay legal costs in electronic form”, – Oleksandr Klymenko said.
In the context of taxation, the World Bank does not see any progress. “For instance, if in 2013 entrepreneurs spent 350 hours a year on submitting tax reports, this year they will spend 355.5 hours. The percentage of the general tax rate on profits was 51.9% during the period of my operation in the Ministry. Nowadays, this index is the same. It also relates to the amount of tax payments “- the leader of the «Uspishna Kraina» explained.
According to him, if we talk about other real indicators, Poroshenko does not succeed. “During the last two and a half years, the country’s GDP in dollar has fallen twice compared to 2013 year. The growth of the total debt has increased by 2.92 times. During this period, inflation has exceeded 80%, while the national currency has depreciated by more than 3.3 times with respect to the dollar, “- the politician described course of events.
In addition, the interest rate of the National Bank has been raised twice. Business has lost UAH 150 billions of working capital “thanks” to purge of banks. Moreover, “innovations” of the power in tax policy (for instance, electronic VAT administration system) completely deprived business of own working capital. At the same time, monetary policy of the state does not allow businesses to get cheap and prolonged loans.
According to the draft budget of 2017, the sixth part of the state income will be allocated to the payment of interest on state debt. The amount of such expenses in 2017 will amount to more than USD 4 billion. Thus, all entrepreneurs and citizens will pay taxes and fees during two months in order to pay interest on the debt, “- Klymenko wrote.
“Here is your Doing business in Ukraine” – the politician summed up.