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Expert commentary

Simplified Tax System: Pros and Cons

27.12.2017 CASE Ukraine`s senior economist Volodymyr Dubrovsky commented to the “Radio Vesti” on the prospects of a simplified tax system and expediency of mandatory cash registers.

According to the expert, Ukraine`s unified social tax is, in fact, a tax on labor. It must maintain pensioners, but, in fact, the solidarity system in which this tax exists has lived out itself and cannot deal with current demography that takes place in all developed countries, where each next generation is no more than the previous, but less.

The economist clarifies that this system was built on the principle of financial pyramid, and this pyramid has fallen. There is no way out of the vicious circle, only abolishing this labor tax.