KIEV, Nov. 1 – The recommendations of the International Monetary Fund on the draft Tax Code, which has been adopted at first reading by Parliament, will not settle the problem of the shadow economy in Ukraine, according to Natalia Korolevska, the head of the parliamentary committee for industrial and regulatory policy and entrepreneurship.

"The IMF is well aware that the decrease of tax on profit by several percentage notches [by 2%] would lead to nothing more than a fall in budget revenues, so this is not an approach [to settling a problem of] cutting the shadow market," Korolevska said at a briefing in parliament.