Ukraine ranks fifth in the world among countries with the highest payroll tax rate according to the 2015 Doing Business index. According to the OPPOSITION BLOC leader Serhiy Lovochkin, it is one of the top factors paralyzing Ukraine’s economy, the press service of the political party reports.

“All the current government has been doing over the last six months is increase taxes, including payroll taxes. They introduced the military tax, planned to increase individual income tax, while the decision to cut the single social contribution proved to be a fiction. These government measures drove Ukraine to be among outsiders of the Doing Business index,” the politician said.

“But it’s not only about rankings. High payroll taxes stifle business development driving entrepreneurs into the shadows. As a result, we have low official salaries in the economy and, consequently, beggarly pensions: more than a half of our pensioners receive less than $ 40 per month. High taxes paralyze economic activity,” Serhiy Lovochkin explained.

The member of parliament believes that the tax reform should become one of the first steps of Ukraine on its way out of the crisis.

“But the tax reform should be part of a comprehensive program that includes lasting peace, protection of domestic producers and strengthening social protection. The current government has shown that such a program is beyond their abilities,” Serhiy Lovochkin summed up.