The Verkhovna Rada of
Ukraine approved the submitted by the Government and agreed by the
parliamentary coalition law on reform of the mandatory state social insurance
and legalization of the payroll (No. 1573), which provides for the reduction of
a single social tax from 41% to 16%.
Prime Minister of
Ukraine Arseniy Yatsenyuk, while introducing the bill in the Parliament, stressed
an extremely constructive position of the deputy factions in the process of the
finalizing and introducing the key proposals to this bill.
The PM emphasized
that the rate of the single social tax amounting 41% is an excessive burden on
the salary “and it, in any way, contributes neither an employer nor an employee
to legalization of salary”.
decrease in the SST rate, he said, may lead to the risk to fail in obtaining relevant
income, "and we can have a hole in the Pension Fund”, “But we believe that
the Ukrainian business that wants to have simplified conditions to do business,
will accept our joint offer and start to legalize and bring out of the shadows the
wages - through a significant and radical reduction of the single social contribution",
"The state, on
its part, has done an incredible step - the reduction of the single social contribution
from 41% to 16%. And we believe our business, that the business will make a
step towards not the state, but the people - as it implies revenues of the
Pension Fund, reimbursement of pensions and other social benefits, and legalization
of wages, leads them out into a transparent mechanism, it will cease paying
them in envelopes, using tax pits and thus to evade taxes and to deprive
citizens of Ukraine of appropriate provision of pensions. As today the payment
of wages in envelopes means that tomorrow people will live for a minimum
pension, instead of the pension that they actually earned," explained
"We will calculate
every thing. There will be certain difficulties in
administration. But it's a true reform, a strong reform. And the success of this
reform depends on the true intentions of the business and on a comprehensive dialogue
between the government and the business", stressed the Head of Government.
noted that if we have warnings from the international financial creditors
regarding this law, it will be revised, "But I hope that we will be able
to prove the correct nature of this model and will be able to increase the
revenues of the Pension Fund”.
The Verkhovna Rada adopted
bill No. 1573 with the proposals of the parliamentary factions of the coalition.