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In accordance with paragraph 3 of Article 27 of the Budget Code of Ukraine “the Laws of Ukraine or their separate provisions affecting the budget indicators (reducing budget revenues and/or increasing budget expenses) and approved no later than July 15 of the year preceding the planned one, shall be enacted not earlier than the beginning of the planned budget period”.

In view of this, the document sets out the areas of state tax policy (STP) transformation which need to be discussed in the expert community and with all stakeholders, and in case of positive perception of these proposals, the development of a bill to amend the Tax Code of Ukraine in the first half of 2021 till the specified deadline.

The proposals presented here are to transform the state tax policy aimed at forming a tax system in Ukraine that will promote long-term, balanced, inclusive economic growth and, at the same time, provide a sufficient level of state revenues to perform its functions. To do this, in our opinion, in the medium term there should be a general redistribution of the tax burden by applying the entire list of taxes and their constituent elements (taxpayers, objects of taxation, tax base, benefits, tax rates, etc.), which should lead to the elimination of disparities in the tax system of Ukraine, and will contribute to structural modernization of the domestic economy in the long run and increase the level of voluntary tax payments. These proposals mainly concern changes in the structure of the tax system and elements of taxes, and do not concern the corresponding changes in the system of their administration, as this is the subject of a separate discussion.