OREANDA-NEWS. May 27, 2010. New Tax Code will preview reducing of the fiscal burden on the economy. This the Vice Prime Minister of Ukraine Serhiy Tigipko said in exclusive interview to "1+1" TV channel.

"We started working on the new Tax Code. In it the reduction of fiscal pressure on the economy is planned. We are planning to pass it through the Parliament in first reading by the end of June this year"- the official said.

According to Serhiy Tigipko, the tax system streamline is a significant step towards entrepreneurs and investors. "Ukrainian Tax Law is one of the worst in the world. If in such conditions we will still put pressure on business, we will get feedback. In nearest future I will meet with representatives of the Tax Administration, Customs Service and we will talk about it" - Vice Prime Minister of Ukraine said. Governmental official said that reforming the tax laws is an extremely important task, as both domestic and foreign investors are concerned about the current situation in the country.

However, the government should solve the problem of budget deficit. According to him, tax collection and customs administration streamlining is the first step. To Serhiy Tigipko opinion, increasing the excise taxes, including on tobacco and spirits, is justified at that stage. "Now the budget deficit makes 5.3 per cent. We must live with the money we can earn. Therefore, we have to reduce the deficit. The country is in difficult situation. We need to think about teachers, doctors, pensioners" - the Vice Prime Minister said. In addition, Serhiy Tigipko said that excise on these products will not be increased until 2012. This in turn will enable businesspersons to plan their activities for the medium term.

Governmental official also stressed that the Cabinet of Ministers of Ukraine provided excises set at a level lower than in neighbouring Belarus and Russia. Together with control of the situation at customs, it will prevent the smuggling of cigarettes and alcohol.