Taxes and Subsidies

Taxes:

Main efforts of this business line are directed at reforming the tax system in terms of reduction of the general level of the tax pressure, providing and realizing an investment, and social orientation of the tax system, improving the tax administration and tax discipline.

Within the frames of the activity on this business line the following initiatives are be worked out:

• Tax System Reform -Overall tax system no more burdensome than any other in the region; tax system supports competitiveness and investment
• Loss Carryover Provision of Tax Code- Enact in new tax code
• Tax Compliance / Administration -Predictable, consistent, and rational administrative system with lower compliance costs and less burdensome inspections
• Services Cooperatives Tax Reform - Correct the tax base computational methods
• Real Estate Tax Reform - Same as for overall tax system
• VAT Reimbursement Reform - Administration of the laws and regulations in a timely and transparent manner without corruption
• Land Tax Base Valuation Reform - Competitive market valuation with social equity

Within the activity of the project the detailed analysis and evaluation of the existing legislation and tax code will be done as well as possible variants of the creation of a more transparent , understandable, and competitive tax system ( tax structure, tax base, rates level and tax administration ) with consideration of peculiarities of the agrarian sector are to be developed

Subsidies.

Main objectives of the business line are:

• establishing the effective budget support to the agrarian sector targeted at the increase of the "green box" expenses and revision of the "yellow box" expenses;
• totally reforming the structure and principles of the budget support to agriculture by refusing from ineffective programs of support, such as tax holidays, that have acquired the form of subsidies to agricultural commodity producers;
• guaranteeing equal conditions of the access programs of the state support to enterprises with different forms of economical management;
• engaging NGOs into the distribution of budget funds on the bases of delegating the state authorities to them.

The following initiatives will developed within the frames of the activity of this business line:

• Subsidies System Reform - stimulation of the productivity and competitiveness of agriculture and rural development;
• Subsidies Administration Improvement in Agricultural Sector.

Within the activity of the project the detailed analysis and evaluation of the existing legislation, programs the state support, and subsidy allocation mechanisms will be done, as well as calculated variants of the formation of more transparent, concrete subsidy administration targeted at creating a more competitive environment for the business development, and an increase of incomes of agricultural commodity producers are to be developed.