Single Social Tax May Become A Reality

Concorde Capital: This is a great intention on the part of Yushchenko. Income taxes were reduced to 13% in 2004 to help convince people to report their real wages. However, the high level of social taxes (35.7%) is a serious obstacle to bringing incomes out of the ?shadows.? The government has also said it might cut taxes further in 2006, particularly VAT. The government wants to reassure entrepreneurs that it will consider their interests next year, as the amendments to the budget law this year significantly limited benefits to producers and industries, in exchange for greater social benefits for the general public.