In modern Ukraine, the tax and customs systems must meet the following requirements (in this our position coincides with Bendukidze Free Market Center):

• Simplicity - a small amount of taxes with a base that is easily identifiable.
• Justice - no benefits, exceptions or privileges. 
• Neutrality - the types of taxes and methods of their administration should not distort the incentives of economic agents, pushing them to choose the scope, method and structure of activities for the sake of effective tax minimization. 
• Efficiency (constancy) - the tax system should provide a sufficient level of income in order to maintain a balanced (in the short and medium term - surplus) budget. The challenge is to achieve this result amid a reduction in the number of taxes and their nominal rates. 
• Competitiveness - given the complex “credit” history of Ukraine, its tax system should be more attractive to investors than systems of central European countries and states with a similar level of development.

To make a successful reform, it must guarantee taxpayers the irreversibility of reducing the tax burden in the medium term (complicating the procedure for raising rates or introducing new taxes; there may be a need for constitutional amendments and the introduction of “organic laws” that have a special procedure and priority). It is also necessary to draw a line under the past (tax amnesty and property amnesty): its allows the fiscal service to concentrate on administering current tax revenues, and business, both old and new, to play by the same rules.

It is also necessary to carry out a complete reboot of the fiscal service. Its number should be reduced to 1000 people in the first stage. And up to 100 people in the second stage.

Changes in taxes and fees:

• The division into the general and simplified taxation system is canceled. The same taxation rules and tax rates apply to all enterprises, entrepreneurs and individuals.
• All existing taxes and fees are canceled. Cancellation: income tax, VAT, ERUs, VS, PIT, single tax, value added tax, duties, real estate tax, transportation tax and all other taxes and fees.
• Two taxes are introduced:

1. EXPENDITURE TAX at a rate of 4%. All expenses of legal entities and individuals are taxed on expenses. Including: payment for raw materials, materials, components, equipment, real estate; payment of non-cash salaries, office rental, payment for the services of contractors; payment for goods and services for personal consumption and other expenses. (Non-cash expenses in the form of cashless payments received in Ukraine from abroad, as well as operations of depositing and withdrawing credit and deposit funds).
2. TAX WITHDRAWAL FROM THE BANKING SYSTEM OF UKRAINE at a rate of 10%. The following are taxed on the withdrawal of funds from the banking system of Ukraine: transfer of non-cash funds abroad (excluding the purpose of payment) cash withdrawal from a bank account at the bank's cash desk or through an ATM. (The accrual and payment of the payment of this tax exempts the payer from paying the tax on expenses on this payment).

The new tax system stimulates the work of capital within the country and taxes the withdrawal of capital from Ukraine. The lowest payroll taxes (only 4%) and the absence of a profit tax stimulate the development of intellectual labor and investment in human potential.

Tax Administration Changes:

• Mandatory registration of business entities is canceled. Since the same taxation rules and tax rates are applied to all enterprises, entrepreneurs and individuals, there is no need for special registration, communication or obtaining permission to conduct business.
• Obligation to use settlement registrars is canceled.
• The tax reporting of taxpayers is canceled. Since the taxpayer does not independently calculate and pay taxes, there is no need to take them into account and submit reports to the tax service.
• Tax audits of taxpayers are canceled. Since the taxpayer does not keep tax records and does not pay them on his own, there is no need to verify the correctness of tax calculation and payment.
• Banking agents become tax agents for cashless payments. At the time of transferring money from the bank account by the client, the bank additionally charges 4% of the transferred amount from the same account as a tax on the expenses of the owner of this bank account.
• The tax agent for cash is the taxpayer. Payment of such taxes is optional.