Kharkov entrepreneurs demand to halve the single social contribution tax

Kharkov entrepreneurs will develop an anti-crisis program for Ukraine and will demand its adoption by the Ukrainian parliament, the Cabinet and the President, said Alexander Chumak, president of the Association of Private Employers (Kharkov), at a press conference on February 26 dedicated to creation of the Administration of small and medium businesses. According to him, public organisations can mobilise the best experts for the implementation of economic reforms. It is the small and medium business that has the potential for rapid growth of the economy, but after the state fulfills a number of conditions.

Chumak said that to create the most friendly business environment for small and medium-sized businesses, the authorities need to revise certain provisions of the Tax Code, to establish an effective state-backed safety network for small businesses, to introduce a moratorium on all kinds of fiscal audits for small businesses and to pardon the fines and back taxes currently processed by the courts. Also, the state should reduce single social contribution tax to about half of its current amount, as it puts a heavy load on salary schedule, resulting in pay-in-hand wages.

As Chumak noted, development of small and medium-sized businesses will facilitate solving many social issues by, for example, liaising with employment centres to solve the problem of the first job for young professionals.

The state must also pay attention to developing the institution of professional associations, as the professional know best what is needed to improve the situation in their particular segment, said Dmitry Kutovyi, first deputy chair of the “Regional Construction” Association (Kharkov). This will help in better targeting of business climate issues.

The Memorandum on creation of the Administration is signed by Alexander Chumak (president of the “Association of Private Employers”), Vladimir Kosenko (chair of the “Union of Workers of the Security Sector”), Alexander Sharmar (chairman of the Trade Union of Entrepreneurs of Kharkov), Eduard Naboka (executive director of Kharkov regional branch of Ukrainian Union of Industrialists and Entrepreneurs), Alexander Kolesnikov (head of State Entrepreneurship Mission in Sumy, Chernigov and Kharkov regions), Anna Gorina (representative of the “Chamber of Tax Advisers of Ukraine”), Sergey Startsev (chair of the Kharkiv regional branch of the Trade Union of the taxi drivers).

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