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Government is not to rise USC

"I should not say the decline in USC has generated great results but returning to this issue is not on agenda."

Government is not to rise USC
Mykola Shambir
Photo: Photo: Max Trebukhov

The Ministry of Social Policy excludes the possibility of raising the size of unified social contribution (USC) in the process of pension reform.

"I should not say the decline in USC has generated great results but returning to this issue is not on agenda," Deputy Minister Mykola Shambir told a round table conference in Gorshenin Institute on 27 April.

The rate of USCs in Ukraine was reduced from 36% to 22% since 2016, which cut the revenues generated by this tax by 29%, from 185.7bn hryvnia to 131.9bn hryvnia a year.

President Petro Poroshenko stated last October that the reduction of the unified social contribution rate was the most effective tax reform and "the budget losses were absolutely minimal".

At the same time, the former Minister of Finance, MP Viktor Pynzenyk, has written in a blog on LB.ua that the reduction of USCs has not resulted in the legalization of incomes: "The effect of reducing USC was zero, although – why zero? Ukrainian pensioners were deprived of a source of pensions."

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