22 Nov 2010 20:46

New tax code will boost Ukraine's integration into world economy - tax service head

KYIV. Nov 22 (Interfax) - Ukraine's new tax code passed by parliament last week takes into account the position of the International Monetary Fund (IMF), chief of Ukrainian State Tax Administration (GNAU) Alexander Papaika said in a statement circulated by GNAU's press service on Monday.

He described the code's passage as a historic event.

The new tax code takes into account the IMF's amendments, forecasts and recommendations, Papaika said.

On Monday, he met with an IMF delegation under senior economist Peter Barrand.

"Now that the country has a tax constitution, we will gradually start integrating into the world economic community, ensuring mutual trust, free trade and international approaches to social problems," Papaika said.

GNAU will do everything possible to prop up national economic security, reduce the share of the shady economy and replenish the budget, he said.

The IMF mission prepared recommendations for a five-year reform of the Ukrainian tax service, the statement says.

IMF experts praised GNAU's efforts to introduce electronic tax declarations and to switch to an automatic VAT repayment system, the statement says.

"These recommendations will help create a favorable investment climate and make progress in de-shading the economy," Papaika said.