Page 41 - UKRRptNov19

6.1.2 Budget dynamics - specific issues...
A flat income tax, possibly of 10%, is under government discussion as part of a wide-ranging tax change package, says a participant in a government working group. Separately, Economy Minister Tymofiy Milovanov proposes a debate on adjusting taxes to “provide incentives for job creation, increase salaries, and reduce unemployment.” Writing on his Facebook page, Milovanov proposes lowering personal income taxes, raising real estate taxes, and improving VAT collection. Ukraine’s rock bottom real estate taxes explain why many cities are blighted with buildings that stand vacant for years on end.
Taxes on gambling could yield the Treasury $200-360mn a year, Finance Minister Oksana Markarova estimates in an interview with lb.ua. A bill to legalize gambling was submitted to the Rada 10 days ago. Finance Ministry economists are calculating tax earnings from the proposed legalization of amber mining.
6.1.3 Budget dynamics - funding
Over the next two months, the Finance Ministry plans to raise $2bn – in foreign currency or hryvnia bonds, Finance Minister Oksana Markarova tells LB.ua. Referring to the steady compression of yields at the Ministry’s weekly auctions of hryvnia bonds, she said: “For the last three months, we have been reducing the cost [of borrowing] every Tuesday, and doing it with incremental steps.”
Ukraine now is the number one country destination for EBRD loans,
EBRD country manager Pilloux said. New lending this year should hit €1.2bn. Pilloux announced a €300mn loan for the development of regional roads across Ukraine. Honcharuk wrote on Facebook: “We start with rebuilding roads
41 UKRAINE Country Report November 2019 www.intellinews.com