New government’s unfulfilled tax promises to business

According to leader of the People’s Self-Defense civic movement Yuriy Lutsenko, the first steps by the new government indicate that they have abandoned their campaign promises, especially with regard to introducing a tax holiday for small and medium business.

"They spoke about tax holidays and now they’re saying perhaps for small business, and not even mentioning medium business. They’re saying they’ll abolish the income tax, but this is a tax that basically no one in the country is paying. The fairy tales about a tax paradise for business have been forgotten," Yuriy Lutsenko said on Channel 5.

He also recalled that the when the ruling government was in opposition, they strongly criticized Yulia Tymoshenko’s policy on external borrowing. "But today Vice Prime Minister Tihipko said that they need $5 billion in a single tranche. Forget about all the talk of reviving the economy and reforms. We heard from these people that they would regulate the VAT as soon as possible. And now we have these odious faces [in government] and absence of any steps, or at least explanations, aimed at fulfilling their election promises," he added.