Oleksiy Lyubchenko: Half of population is in a corridor between the minimum and average wage

An increase in the minimum wage by 40% is quite real. This was stated by Chairman of the State Tax Service of Ukraine Oleksiy Lyubchenko in an interview with “LB.ua”.

According to him in 2019, the number of 3.5 million people received less than the minimum wage of 4.173 UAH which is a quarter. The same number of 3.6 million people received more than the average wage of 10500 UAH which is also a quarter. As follows, the half of population is in a corridor between the minimum and average wage.

“As I said a month and a half ago, we take taxes from taxes. Ukrainian know-how was invented, namely wage at a cost. If we have 18% of the personal income tax plus 22% of the single social contribution – this is 40% of the load. I don’t touch the military levy – it’s sacred. It is possible to reduce up to 30% and get 2-3% of sales tax and that’s all. To unload the business and pick up taxes at the end point” – stated Oleksiy Lyubchenko. 

Chairman of the STS noted that reducing the workload by 10% will unload the payroll wage fund. Instead, these funds can be reimbursed, specifically by controlling the foreign income taxation and income from the property lease. For example, there are citizens who own 10 or more apartments (about 3 thousand) but not all of them declare income from the property lease.