Basis for comparison: the State Budget Law for 2007, as amended on May 30, 2007; the Draft State Budget Law for 2008 submitted by the Cabinet of Ministers to the Verkhovna Rada on November 28, 2008.
Basis for comparison: the State Budget Law for 2007, as amended on May 30, 2007; the Draft State Budget Law for 2008 submitted by the Cabinet of Ministers to the Verkhovna Rada on November 28, 2008.
Enterprise profits tax (EPT) revenues are the second most important source of consolidated fiscal revenues after the VAT. In 2006 the EPT revenues amounted to UAH 25.7 bn (4.8% of GDP). Being under-executed during the most of the year, the execution of EPT revenues reached 100.2% of the target in 2006 due to good collection rates in November and December. Such change could be explained by improved economic performance of enterprises as well as better tax administration in the end of the year.
For the comparison of the tax revenues forecast of the Institute for Economic Research, we use the parameters of the State budget law for 2006 and the draft of the State budget law for 2007, submitted to the Verkhovna Rada on 15 September 2006.
In this issue of TRO, we present forecast and budget for the VAT and EPT not taking into account clearing operation that nets compensation of Oschadbank deposits, tax arrears of utility sector, and non- ayments of population. The fiscal plan of the State budget from 20.12.2005 with amendments from 16.03.2006 is taken into account.
In this ‘Tax Revenue Outlook’ issue, we compare our forecasts for 2006 with the figures given in the Draft State Budget Law for 2006, which the government submitted to the Verkhovna Rada on September 15, 2005.
In Ukraine, the major part of the consolidated fiscal revenues is collected in the form of taxes, which account for 70% of total revenues. Key taxes are the value added tax (VAT), the tax on profits of enterprises (EPT), and the tax on the incomes of physical persons (PIT).