On September 27, Minister of Finance Oleksandr Danyliuk approved KPIs for the reform of the State Fiscal Service and sent them to the Head of the SFS. The KPIs were sent along with the letter of the Minister of Finance to the Head of the SFS where he set strategic targets and objectives for 2016 and 2017. Similar practice exists in many European countries including France and Great Britain.
Why did the Ministry of Finance elaborate the KPIs for the SFS and how does it work?
The reform of the SFS must deliver tangible positive results for business. To make it happen and to be able to measure the results, the Minister of Finance set concrete targets for each of the key reform areas. This is what the KPIs are about.
One of the KPIs is the regular evaluation of the taxpayers’ satisfaction with the performance of the SFS. The attitude of business to the work of the SFS is the best success indicator for the reform.
The Head of the SFS should report on a monthly basis about the current KPIs and publish his reports on the SFS website. The Ministry of Finance will also be publishing the SFS reports on its official website. Thus, every citizen will be able to track the progress of the reform at the SFS.
What shall this system of KPIs deliver?
- it shall significantly reduce corruption at the SFS
- it shall improve the manageability of the SFS
- it shall reduce the number of arbitrary tax checks and wrong additional tax bills
- it shall improve the effectiveness of legal protests against the decisions of fiscal authorities
- it shall reduce tax debts
- it shall minimize the human factor
- it shall improve the quality of service
How were the KPIs for the SFS elaborated?
The KPIs were developed jointly with public experts of the Reanimation Package of Reforms, the Scientific and Research Institute for Fiscal Policy and the Institute for Tax Reforms. The Ministry of Finance also hosted an open public discussion of the KPIs where everyone could present his ideas and comments. The Ministry of Finance presented several drafts of the KPIs to public experts for discussion.
The Ministry of Finance is striving to be absolutely open in its work, that is why as many actors as possible were engaged in the elaboration of the KPIs as well as amendments to the tax regulations. Thus, the draft law on tax amendments which the Ministry of Finance will soon present to the Government has already been publicly approved by the US Chamber of Commerce, the All-Ukrainian Association of Small and Medium-Sized Business “Fortezya”, the European Business Association, the Association of Ukrainian Entrepreneurs as well as by the experts of the Reanimation Package of Reforms uniting a number of leading research centers and civil organizations.