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Ukraine: Tax Reform Is An Urgent Requirement

Washington, 3 October 1996 (RFE/RL) -- Tax reform is an urgent requirement for Ukraine, says Ukrainian Deputy Prime Minister Victor Pynzenyk.

His government intends to move to reduce the highest taxes on incomes, while broadening the tax base and improving collections, he says.

Pynzenyk told the annual meetings of the International Monetary Fund (IMF) and the World Bank in Washington yesterday that Kyiv plans to carry out "substantial institutional and structural reforms" in the coming year.

He said 1996 has seen several "remarkable milestones in economic reforms" in Ukraine, including a dramatic cut in inflation and enough privatization to have more than half of the GDP (gross domestic product) come from the private sector.

The Deputy Prime Minister said that since March, shares in about 400 large and medium-sized enterprises are auctioned off each month, and the next aim of the government is to take action on land reform.

Pynzenyk said financial stabilization has had a number of positive effects for the country, including an appreciation of the Ukrainian currency by 10 percent in nominal terms since the start of the year.