ABSTRACT
This chapter reviews some problems of the major taxes in Ukraine, notably, income tax, value-added tax, excise taxes, customs duties, and payroll taxes. Tax privileges facilitate the directing of national resources to enterprises and organizations that are not intended to be subsidized. In 1995, companies were granted the right to decrease tax obligations by the amount of value-added tax paid, with the approval of tax inspectors. In general, the value-added tax “punishes” the privileged, except for diplomats who are considered as end-consumers. The use of a double base, though it complicates accounting somewhat, is nonetheless a perfect instrument for the unification of the tax base for homemade products and imported goods. Under command economy conditions, when wages, production, and consumer prices were all fixed, it was relatively easy to find a stable tax base. The executive staff of large corporations or state enterprises consider the payroll fund tax as unpaid wages as well.
