KIEV, Dec. 31 – President Viktor Yanukovych has signed a law on the reduction of income tax for 2014 from 19% to 18% instead of the previously foreseen 16% stipulated in the Tax Code, and lowering value added tax (VAT) from 20% to 17%.

The relevant law on amendments to the Tax Code regarding the rates of certain taxes and tax benefits was adopted by Parliament on December 19.

It foresees a further reduction of income tax by 1 percentage point in 2015 and 2016, thus the rate of 16% will be valid from 2016.