OREANDA-NEWS. The Government of Ukraine is actively working on amendments to the budget and tax legislation, "The deadline for the submission of such amendments to the Parliament is the next Tuesday," Prime Minister of Ukraine Arseniy Yatsenyuk informed at a government meeting on Wednesday, December 17.

"We appreciate our cooperation with parliamentary groups on the coordination of positions on the budget and taxes. We call on our colleagues in the Parliament to show pragmatism and understanding of the situation and in any case not to play politically in adopting difficult but the right bills for the country," he stressed.

"I hope that there will be a full understanding of the entire parliamentary coalition of their responsibility for the fate of the state," the Prime Minister added.

He emphasized the need for coordinated actions of the Government, Parliament and the President in order to implement a reform plan, which is "clearly reflected in the Government’s Action Program as well as in the coalition agreement." According to the Prime Minister, during the working visit of the Ukrainian delegation to Brussels on December 15-16 and meetings with partners from international financial organizations "it was clearly stated that they perceive each item of the reform plan, reflected in the Action Program of the Government, they find it right and ambitious."

"We have to make tough decisions. Such decisions were taken in Poland and in other member states of the European Union, Spain, Italy, Greece, the Baltic countries. So, the path of reforms is difficult, but the only right. And now we must go from words to actions, to very practical and clear things regarding each item of tax and budget reform and the new Law of Ukraine on the state budget," Arseniy Yatsenyuk emphasized.

Specifically, these measures are about to balance the "greatest gap in the Ukrainian economy - Naftogaz Ukrainy:" We are subsidizing the company, but should give subsidies only to the poor."

He noted that much has been done to "bring order to Naftogaz in terms of direct contracts between Ukraine and European companies that supply gas": "There are no more intermediaries, and this has enabled Ukraine to save hundreds of millions, billions of dollars, while the main problem remaining in the pricing of Naftogaz Ukrainy has not been solved yet."

In addition, according to the PM, it is necessary to establish targeted subsidies "for every person who needs help": "I am convinced that in the same terms should work all the MPs, who should do everything possible to stabilize the situation in 2015."

The stabilization of the situation in 2015, he underlined, is directly connected "with tough and correct reforms and appropriate financial aid from Western partners." He recalled that Ukraine had received a \\$9-billion financial assistance in the current year while we paid off \\$14 billion for debt, "All this was done by de-shadowing economy, increasing tax revenues by 5% compared to the last year."

"But it is impossible to press the economy through tax levers forever. Therefore, we will in our package, which is being working out with factions, present both a plan for de-shadowing and taxation of additional income," Arseniy Yatsenyuk stated.

He also said that this year the Government took a range of decisions to increase the tax burden on profitable businesses, "owned by Ukrainian oligarchs": "We raised four times the tax rate on ore rent - it is something that couldn’t have been done for twenty years. We also raised the tax rate on rent for oil and gas. In fact, the increase was three to five times. "In addition, it was decided to tax excise goods - alcohol and tobacco.

"Due to these actions we managed to attract necessary funds to the state budget, despite the incredible economic decline. We lost 20% of the Ukrainian economy due to Russian military aggression."

Arseniy Yatsenyuk said that the tax and budget packages of the Government "preserved the key principle - the principle of justice": "On the one hand, it is necessary to optimize the benefits, and, on the other - to make the Ukrainian oligarchy pay taxes. This is the right way."

"I hope that the big Ukrainian business support such policy, because the country is in a very difficult situation," he added.

The Prime Minister of Ukraine also expressed the belief that the Parliament would work constructively to support government bills, "Excessive political rhetoric is feasible. Now it is about the stability of the country, the need for carrying out reforms and that 2016 should be a year of economic growth. And in 2015 we must show that we are ready for the toughest, most radical measures that have begun several months ago and should be continued."