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OSF contributed to the campaign for the simplified tax system

Monday, 11 January 2016 516
In November 2015 OSF joined the Coalition for support of the simplified tax system. Coalition aimed to impose a moratorium on amendments to the simplified tax system for a period of 3 years. Due to successful national advocacy campaign coalition members managed to retain most simplified tax system elements despite the government's intention to destroy it within the initiated tax reform. Given the imperfect and corrupt overall taxation system, the simplified tax system scheme serves as an opportunity for socially active citizens to create and maintain jobs for themselves and their employees, work legally, pay taxes, spend less time on reporting and reduce the social burden on the budget.

OSF supports the initiative of the government to reform the tax system as a whole. However, we consider the proposals to amend the simplified tax system (STS) untimely, non-priority and destructive for the public welfare and business conditions. According to OSF experts the officials had set the priorities wrong. We recommend focusing on a radical reform of the overall tax system, reduction of significant corruption risks and illegal financial flows bypassing national and local budgets.

According to the OSF Director Ivan Sikora "given discretionary and repressive national tax system, with numerous legal gaps, along with the existence of corrupt fiscal authorities and courts, simplified tax scheme is an alternative for the active members of society. These people wish not to wait for employment by the oligarchs or the state and create jobs on the open labor market for themselves."

Moreover, according to Sikora, the simplified tax system is the key policy tool for small and medium business, given their limited access to finance and credit, infrastructure and other resources that form the assets of SMEs is limited. According to the OSF Director STS is the key to strengthening the middle class, which formed the basis of two Ukrainian revolutions (2004 and 2014) and volunteer movement, and contributed to high-quality and independent public oversight over the government and individual politicians. The Coalition for support of the simplified tax system was able to retain its elements in 2016. Learn more.

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