Ukraine's Investment Reform to Attract USD 80 Billion Before 2014

KYIV, Ukraine, April 8, 2011 /PRNewswire/ -- Implementation of investment reform in Ukraine is expected to increase the amount of investments up to USD 80 billion within the next three years, stated Vladyslav Kaskiv, head of the State Agency for Investment and National Projects Management, at the public presentation of the Investment Reform.

By increasing amount of investments, Ukrainian officials expect to raise the country's ratings in World Bank's Doing Business to 100th position (Ukraine was rated as 145 in 2010) and in Global Competitiveness Report of the World Economic Forum - to 50th position (currently Ukraine ranks 82). The reform includes restructuring of Ukraine's tax and customs authorities.

The Ukrainian President Viktor Yanukovych, who also attended the presentation, has reminded that Ukrainian businesses are unsatisfied with the performance of state tax and customs authorities. He voiced the main concerns of the business community: untimely VAT refund, issue with simplified tax system for SMEs, inefficient countering of smuggling, etc.

"In order to address the aforementioned issues I have ordered the government to elaborate a program to reform the State Tax Service and State Customs Service," stated Viktor Yanukovych, according to his official Web site. Under the conditions of the reform, state supervising bodies' amenability to their unlawful actions will be considerably increased. Moreover, issues within customs legislation (corruption within customs authorities, holdups of products at the border, etc.) would be eliminated with adoption of new customs code. As far as adaptation of Ukrainian businesses to the new tax legislation, the new tax code foresees a six months transition period, during which penalties for violations of tax legislation will be applied but at a symbolic amount of 1 hryvnia (approx. USD 0.13).

According to the program of economic reforms in Ukraine for 2010 - 2014 the government will form a transparent market of agricultural land before the end of 2012.

The Committee on Economic Reforms has developed a program, according to the President's order to restore economic growth and modernization of economy in Ukraine. The reforms are aimed at building a modern, stable, open and globally competitive economy, professional and effective governance, and ultimately - to increase the welfare of Ukrainian citizens, according to the official Web site of the President.