The current legal system governing the interface between business and state administration is far too complicated, and interpretation of the law often depends on individual decisions of the tax authorities and courts. In order to function in this thicket of regulations, highly paid advisors are needed.
Previous tax cuts released 1% of GDP worth value to taxpayers’ pockets, followed by ongoing red tape cuts and market deregulations. These moderately intensive reform trends have created a methodologically based contribution for slight increase of economic freedom.
By April 1, state officials and certain other individuals were required to submit 2017 property and income e-declarations. While many people criticized the new requirement for the anti-corruption activists to submit e-declarations, members of supervisory boards at SOEs were also required to submit such declarations in 2018.
Paying the advanced tax in Slovakia is a bureaucratic burden, since an entrepreneur has to take care of the regular payments. But there is a bigger problem. An entrepreneur has to pay the advanced tax from her/his current income – but the payment size is set according to her/his last year’s tax.
The year 2017 brought wins and failures. The Ukrainian Government was able to approve important reforms, which was still not sufficient to receive scheduled assistance from the IMF and the EU. 2018 will be tough as Ukraine should make large progress in many areas, while the 2019 elections are approaching.
On December 7, 2017, the Ukrainian Parliament had the day of Budget-2018. During one day, the Verkhovna Rada amended the Budget Code and Tax Code, as well as adopted the State Budget Law for 2018. The decisions were taken in a very non-transparent way with changes approved from the voice.
In 2014, the Strategic Advisory Group under the support of the Soros’s Foundation prepared the Strategy of Healthcare Reform for 2015-2020. After long debates, the laws launching the healthcare reform were approved in 2017 with first changes starting in 2018.
In his first parliamentary speech, PM Mateusz Morawiecki repeated many theses of the government. Some of them are wrong and contradict the experiences of other countries. Others, while right, stand in clear contradiction with the actual actions of the Polish government.
Ukraine needs at the very least 5% annual GDP growth to catch up with neighboring countries in economic development. One option would be improved investment climate for higher FDI and domestic-sourced capital investment. Other options are limited given lack of fiscal space and aging capital assets.
Since its accession to power, the national conservative government, appointed by the PiS party (Law and Justice), is systematically altering the state in order to secure its power on a permanent basis. The opposition is having a hard time. The fact that the electoral law should now be adapted to the party’s needs is not really surprising.