Ukraine had previously planned to decrease its VAT rate along with lowering its corporation tax rate. However since Ukraine is struggling with a weak economy, the government is now considering shelving plans to cut corporate tax and VAT next year to prevent further pressure on its deteriorating public finances.
In 2010 the country made plans to lower corporate income tax from 19 percent to 16 percent and VAT from 20 percent to 17 percent. In the same year Ukraine planned to lower corporate income tax from 19 percent to 16 percent and VAT from 20 percent to 17 percent. These two taxes normally account for roughly two-thirds of the state’s budget revenue.
