Ukraine in Arabic | A new economic policy was announced in Kiev
KYIV/Ukraine in Arabic/ Ukraine's economy will switch to the new economic policy. Prime Minister Arseniy Yatsenyuk said, presenting a draft program of the government's actions on Tuesday.
According to the Premier, the new model envisages radical cutting of the state sector expenses, reduction of the number of taxes to nine and gradual reduction of the unified social tax to 15 percent, as well as two-year tax vacations for small and medium-size business, economy
"Concerning subsidies in the energy sector, we are compelled to pay the real market price for energy resources. Otherwise, Naftogaz's deficit will remain above the national budget deficit forever. It's wrong if the whole nation is working for the benefit of just one company, Naftogaz Ukrainy, whose deficit was UAH 110 billion this year, compared to the national budget deficit of UAH 68 billion. That's why we will be raising all energy-related prices and tariffs to the market level, concurrently maintaining rebates and subsidies for those who are entitled to them," he said.
The government also wants to change the principles of work with Ukrainian oil and gas companies, he continued.
"We are changing over from quasi-joint operations to the classical world principle of production sharing. In addition to this, in line with our energy policy, we are adjusting approaches to the taxation of energy companies. We will propose a mixed approach to the parliament. A new investor, who has gained access to investment and starts drilling, must pay less. An investor who has started extraction must pay in accordance with a pattern used globally - rent and earnings from selling energy products," Yatsenyuk said.