The average amount of single social security tax collected has decreased by 27% after a two-fold reduction in the tax rate, said Head of the Ukrainian State Fiscal Service (SFS) Roman Nasirov in an interview with TV Channel 24.
”The average amount of single social security tax collected in October-November last year stood at UAH 15 billion, currently it is at the level of UAH 10.5-11 billion. That is, there has been a proportionate increase [in tax collection] after the reduction of tax rate, but this is still an absolutely smaller amount,” Nasirov said.
As the result, the Pension Fund of Ukraine falls short of about UAH 4 billion monthly, according to Nasirov.
”We continue our work on deshadowing of salaries, meanwhile we must decide, jointly with the government and the Finance Ministry, how we will cover the deficit of the Pension Fund,” Nasirov said.
The SFS head noted that about 10.5 million employees in Ukraine receive the official salary, of which 4 million receive a minimum [official] salary, while in neighboring Poland, the country with a smaller population, about 20 million people reportedly receive the official salary.
”We, as a State … should strive for reaching a minimum level of salary of at least UAH 5,000. If we have the minimum salary at such a level – and it cannot be done today, nor tomorrow, but it is possible to do next year – then we will see a cumulative de-shadowing effect,” Nasirov said.
As UNIAN reported earlier, in late December 2015, the Verkhovna Rada adopted amendments to the Tax Code establishing a single rate of unified social security tax at 22% as compared to the previous rate of 41%. Since the beginning of the year, personal income tax has been increased by 3 percentage points to 18%.
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