OREANDA-NEWS. July 24, 2015.  During the meeting of the National Reform Council, President Petro Poroshenko urged to speed up the tax reform and instructed Deputy Head of the Presidential Administration and Secretary of the National Reform Council Dmyto Shymkiv to include the issue in the agenda of the following meeting of the National Reform Council.

"We do need higher revenue. However, this river will dry quickly if we fail to use the reform to encourage the private business sector and economic development according to the economic liberalization strategy. The reform must not result in increased tax burden of the economy and increased tax pressure," Petro Poroshenko said.

However, the only aspect where the President is ready to support increased rates is the luxury tax because the Parliament voted down this law and forgot about it. "As the President, I would like to remind you about it, it is an additional source of funds and the way to justice," the President said and asked to reconsider the issue.

The Head of State mentioned the plans of the Ministry of Economy to reduce the payroll tax. "This is the most difficult problem that we still have to tackle after recent changes in the Tax Code. Today, we will consider of the idea of consolidating the personal income tax, single social contribution, and the military tax as a single payroll tax," the President said.

The President said that he would not approve the tax reform without providing for the single tax for the SMEs.

The Head of State expressed his concern about the pace of preparations for the tax reform and its harmonisation with the budget process. "Retrospective changes are unacceptable today, the deadline is today and we have to discuss, present, develop, and register such amendments with the Verkhovna Rada today," Petro Poroshenko said.

"Is there a need to put the business sector upside down again? Or we will manage to make relevant amendments to the new Tax Code to provide for transitional provisions and incremental innovation that will enable businesses and people to prepare for them and plan their implementation," the President said and urged to speed up the tax reform consideration.