OREANDA-NEWS. September 24, 2010. Prime Minister of Ukraine Mykola Azarov said that the Government developed a draft Tax Code aimed at pulling the economy out of the shadow. The Head of the Government said this in the program “Exam for power” at First National TV Channel.

"Unfortunately, we have in the country such a system that serves the shadow economy", emphasised Mykola Azarov.

The Prime Minister said that the National Bank and commercial banks serving "light" economy. However, according to the Head of the Government, alongside the formal system there is another system that serves the shadow economy, which, in turn, prevents the filling of the budget and, consequently, the implementation of social spending, infrastructure development etc.

Mykola Azarov noted that the developers of the Tax Code guided by the principle of pulling business out of the shadow. The Government anticipates the simplification of the current tax system. In particular, from income tax are exempted entrepreneurs who start their activities, and light industry are exempt from income tax for 10 years. "We offer scope for western, foreign investors, our investors, we say that there is an entire industry - light industry – please, invest and you will be exempted from paying taxes within the next decade. Why are we doing that? First of all, in order to develop the domestic market.

According to the Prime Minister, another effective step in pulling the economy out of the shadow is the restriction of the tax service in the decision-making. So, after the adoption of the Code, any decision of the tax service may be appealed in the court.

Responsibility of the state did not left without the Government's attention. According to Mykola Azarov, penalties will be imposed in case of VAT return delay by the state: "The daily non-repayment of this amount will be charged a fine of 120% rate of the National Bank.

"It is difficult to estimate the unshadowing in percentage, but we expect that a large part of the economy will be beneficial to work "in light", the Prime Minister emphasised.