Income tax not to decrease

Income tax will not be reduced from 20% down to 15 % as it had been promised previously. Instead a new system will be adopted. According to this system, out of the 20 % income tax, 18% will be transferred into the state budget, whereas 2% will be accumulated in individual accounts. The draft law was adopted by the first hearing on May 22.

A decrease of income tax from 20% to 15% was envisaged in the tax code adopted in 2011. These 2% funds create an amount of reserves which would be allocated to different projects, with further profit. So far there are no precise indications where these funds will be used.