Ukraine: the causes of internal conflict are in the economy

When Ukraine provides financial assistance to the IMF, they set the conditions in accordance with which Ukraine was to raise taxes, as well as increase gas prices. From May 1, 2014, this was acted. And the price of gas increased by 50%.The price policy regarding gas affects the mood of the entire population of Ukraine. The industry is already caught losses from increasing gas prices that have occurred in the fall, and the current change in price will still reduce their income. This determines the discontent of the East regarding the policy of Ukraine. And if we consider the increase in the level of taxation, which is regulated by the Tax Code of Ukraine, then it will especially have an impact on residents of the East of Ukraine. The Tax Code of Ukraine and the simple programs – OPZ and IFIN ZVIT will help to better understand the correctness of taxation. It is on the eastern part of Ukraine that the main industrial facilities are located, due to which the level of wages among the population of the East of Ukraine is higher compared to other regions. Residents of Ukraine were divided into 2 camps: 70% consider themselves indigenous Ukrainians, but the rest of the country’s population primarily attributes themselves to the Russian -speaking population. It is the east of the country that speaks more in Russian, and the language barrier is one of the reasons for the conflict in Ukraine. This is a secondary reason, the most important is monetary disagreements. Of course a low level of GDP, equal to $ 7400 a year, in relation to $ 18,100 in Russia. And this despite the fact that in the eastern part of the country of GDP it is about $ 12900 per year per capita (due to a large concentration of industrial facilities), and in the western part there are only $ 4900.The same goes for income tax. In Russia, personal income tax is 13%. In Ukraine, a little different legislation. Income tax 17%. At the same time, there is a progressive scale with steps 0%, 1%, 5%, 15%, 17%, 30%. Due to the higher level of wages, the east of the country pays much more taxes, while the population receives much less on the hands of clean money than the voiced salary before deductions. In addition to such unequal taxation, the reason for the conflict and the country’s high corruption. It stands in 144 place out of 195 possible in the European part of the planet. Recall that last month the Rada approved the law and suggested half reducing the threshold of taxation for products imported into the country from abroad. 246 deputies supported the initiative.