5.6. ... On the revenue side, this can be done by eliminating tax exemptions and curtailing loopholes on the
enterprise profits tax such as double taxation international treaties, to expand the tax base.
Measures on the revenue side also bring about a more balanced adjustment between citizens and
firms.
5.7 The strategy described above is basically a re-orientation of fiscal resources to face the
current pressures and enable the economy to recover. The specific measures discussed below
need to be taken during the first 6-12 months of recovery and growth (Table 5.1).
...
Tax Policy and Administration Reform
- Implement a program to deal with VAT refund arrears that does not create market inefficiencies
and does not punish VAT creditors with implicit discounts. All 2010 refunds should be paid in
cash.
- Eliminate VAT privilege for agriculture.
- Eliminate VAT exemptions for medicines, publishing houses and printed materials.
- Eliminate the excise exemption on bio components of fuel.
- Eliminate the preferential tax treaty with Cyprus on the EPT.
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