KIEV, Ukraine -- Prime Minister Mykola Azarov expects substantial increase on investments in Ukraine's economy as soon as the Verkhovna Rada passes the Tax Code drafted by the Cabinet of Ministers.
Azarov said this while attending the Examination for Power Program broadcast on the First National Channel.
The Tax Code envisages a stage-by-stage reduction in profits and value-added tax at 1% during five years, and a considerable decline in number of existing national and local taxes, the prime minister noted.
"Will investments flow to this country? Surely, they will. This is the key benefit for investors. The attracted funds will help build new manufactures, profitable factories and plants; create new jobs, as well as to compensate a fall in revenues we'll incur through tax cut," according to the prime minister.
After approving the Tax Code the Ukrainian economic system will gain real stimuli, while the external economic environment will be signaled that Ukraine has a stable political system, stable power and the government that comprehensively lays foundations for tax reduction for years to come, Azarov emphasized.
As Ukrainian News reported, the Cabinet of Ministers approved a draft Tax Code on June 9.
The Tax Code provides a stage-by-stage reduction of businesses' profits tax from the current 25% to 20% in 2011 and a further annual tax cut at 1 percentage point to reach 17% in 2014.
The draft Tax Code introduces tax holidays for small and mid-sized businesses from January 1, 2010 to December 31, 2015.
The government expects a new Tax Code and a new Budget Code to be adopted during the current parliamentary session (by July 10) to form basis for planning a national budget-2011.