Taxes of big business in the cities, upgrading schools and building fountains

Over the past three years, local governments have grown from 80 to 180 billion. This was stated by Prime Minister Vladimir Groisman at the last meeting of the Cabinet. This large increase allows local authorities to implement projects, making the city better and more comfortable life. To find out who is making the lion’s share of local budgets, and what is directing these tools, Today visited two major industrial centre — Kremenchug and Krivoy Rog.

PARKS AND GYMS. Changes in Kremenchug immediately noticeable. In the Central square — the most crowded area of the city — a new beautiful fountain, flowerbeds planted with flowers and avenues lined with designer fixtures and benches. Changes in the city can be observed in schools. Local authorities are forbidden to collect money from parents for repairs. Now they are at the expense of the city budget. “We have completely revamped the gym. Replaced Windows, walls and sports equipment, even installed shower stall” — told us the Director of one of Kremenchuk schools. Repairs doing and in hospitals — so, due to the city’s plan each year to repair one or two offices and buy modern equipment.

BIG BUSINESS — SMALL CITIES. Such changes in the improvement of the city happened not least thanks to a conscious and honest citizens. For example, Kremenchug pensioner Nadezhda Fedorovna regularly pays taxes on their property — about 15 thousand UAH per year. “I’m 74 years old, but I go to pay taxes, although the tax must send me a receipt for payment”, — she complained to us.

However, the main “tax” burden pull a large enterprise — there is Kryukovsky car-building plant. “We are working may we all receive an official salary. During the year the salary of employees has increased by two thousand, respectively were higher and payments to the budget”, — told us the Chairman of the Board and Director of the plant Anatoliy Shabala.

He noted that this year the plant paid UAH 125 million in taxes, of which 28 million UAH — to the city. White wages and formal employment is happy and the employee of the plant Alexander, who works in a factory for 16 years, doesn’t know how many over the years with his salary deducted taxes. He sees that Kremenchuk is changing in a good way, and also notes that ofitsialke is stability. “We have many leave to work in Poland and receive the money in envelopes, but then still go back to the factory because I want stability and other social. And at me even thoughts do not arise to go somewhere or get the money in the envelope” — shared with us Alexander.

But not all entrepreneurs are responsible. According to the mayor of Kremenchug Vitaly Malicki, the city loses hundreds of millions of UAH for non-payment of tax on land and income, and most violations in the trade. “About a third of the wages is in the informal sector. If you bring them all from the shadows, then we can get the pit up to 200 million UAH per year, in addition to the 600 million UAH that we get now,” — told us the head of the city.

A similar situation exists in Krivoy Rog — there is a budget filled first of all giant plants. So, the “Northern mining and processing plant” not only pays taxes (only for the first half of the works transferred 1,274 billion, of which UAH 200 million went to the city), but also helps many state-owned enterprises. For example, the local Botanical garden with its unique collection of plants, which is recognized as a national treasure. Recently the plant has allocated to the arboretum about 700 thousand UAH, which acquired a new species, created the greenhouse, laid track and placed benches for rest.

“Every year, we have signed agreements on social partnership between businesses and the city of Krivoy Rog. These funds are used to improve the measures for the improvement”, — told us the Deputy mayor of the city Andrey Poltavets. According to him, in six years only enterprise of Metinvest group listed Krivoy Rog 215 million UAH for the repair of roads, hospitals and schools, and this is not counting taxes. Due to the budget funds to equip a town Park and square.

Local residents Anton and Yulia saying: “the City is changing for the better. For example, in the square added, the paving, benches, symbolic horseshoe for happiness, for the area”, — told us they.

That the largest taxpayers of the country are large companies, and statistics. For example, the amount of taxes paid by SCM Group in 2016, equal to the capital budget and nearly two times higher than the budgets of Kharkiv, Odessa and Lviv combined.

Positive changes in Krivoy Rog, Kremenchug and other cities, say experts. According to the Director of the Institute for development of territories Yuri Hanumana, the main sources of local revenues are taxes do employers.

“The high taxes paid by large businesses-employers, on the second place small business owners on the single tax, the third is those who honestly pays the tax on land,” says Ganuschak.

Furthermore, experts admit that due to the fact that a large part of taxes paid now settles on the ground, the regional authorities have a real opportunity to develop cities and villages. “The modified budget system encourages local authorities to bring in their budgets more funds and thus invest the money in infrastructure development, modernization of cities and villages. Now they are more interested in the fact that entrepreneurs worked in white”, says the expert, “Reanimation package of reforms” Ivan Lukerya.

One of the major arguments for entrepreneurs to bring their business out of the shadows experts call the establishment of cooperation with local authorities, the opportunity to make an impact in the city, as well as visual changes to the landscaping in the place where the majority pays taxes honestly. “This is already whitewashing salaries, small, up to 10%, but in most cities” — sums up Yuri ganuschak.