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.
