Expenses for counter-intelligence should increase, - Finance Minister

Source : 112 Ukraine

According to Oleksandr Danylyuk, Ukraine’s Finance Minister, such reduction will compensate the losses due to the imposition of tax on withdrawn capital
19:45, 11 May 2018

Open source

Oleksandr Danylyuk, Ukraine’s Finance Minister, stated that there is a need to reduce expenses for Ukraine’s General Prosecutor Office and the SBU, and to increase expenses for counter-intelligence. He said it in the interview for Novoye Vremya news agency.

“First of all, it is the General Prosecutor Office. The number of prosecutors per thousand people in our country is the highest in Europe. Then – the SBU. Primarily, I mean economic units. It is better to allocate more money for counter-intelligence as it defends our independence. Reducing the expenses for General Prosecutor Office and SBU we not only save expenses but also provide additional incentives for economic growth,” the Minister said.

Related: Finance Minister lists actions Ukraine needs to take for EU financial assistance

According to him, such reduction will compensate the losses due to the imposition of tax on withdrawn capital, which was not supported by the International Monetary Fund because of the risks for the economy.

“Even if there will be losses from the budget, and considering the fact that there will be some within the first couple of years, we have to find compensators,” Danylyuk added.

Earlier, $6,300 billion is budgeted for defense sector in 2018. In particular, the army will get $2,3 billion, Internal Ministry, Border Guard Service and State Emergency Service will get $2,5 billion, Border Guard Service Administration will receive more than $346,1 thousand, the National Guard - $7,6 million, SBU - $292,3 thousand, The General Prosecutor Office - $292,3 thousand, State Bureau of Investigation - $25 million.

Related: Finance Ministry of Ukraine borrows UAH 2.4 billion, €123 million in domestic market

As it was reported earlier, Poroshenko has postponed the presentation of a bill on withdrawn capital tax in the Verkhovna Rada due to the position of the international partners.

As it was reported earlier, Poroshenko stated that it was high time to discuss changing the income tax for withdrawn capital tax at the meeting with businessmen during the business forum in Kyiv on December 1. According to him, the changes of the taxation might be introduced since 2019 and this has to encourage investments and struggle with corruption.

Income tax differs from the withdrawn capital tax in a tax base, in other words, in what is being imposed on.

Now it is the operating profit of the enterprise – revenue without expenses.

Related: Redistribution of income from criminal business takes place in Ukraine

After the withdrawn capital tax is imposed it will not have any sense to optimize the expenses or put money in offshores. Therefore, the enterprises will demonstrate the real financial results.  

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