As it was announced today by Kommersant: Cabinet of Ministers of Ukraine will refrom simplified tax system.

Azarov is one of the most unpopular political person for small and meduim business in Ukraine. In fact, when it becomes clear that Azarov will lead cabinet of ministers of Ukraine - local businesses became worrying about their future.

Azarov was a prime minister already. His leadership issued a new word to Ukrainians - "Azarovschina". It means disrespect to businesses in general, huge tax pressure in particular, laws violating by tax officers. There are many other side affects, which are described by this word, but they didn't impact business and investments.

So, question is: Did Azarovschina returned with Azarov and will it impact businesses and current investments ?

First steps of new cabinet of ministers of Ukraine stated that yes, indeed, Azarovschina returned. Undre promises of economical growing was masked new tax policies for small and medium businesses: decreasing level of cash in economy will be done through new rule which will force tax applying for some kinds of banking transactions which allows to take cash from banking account.

Well, in fact normally tax is paid during paying for products or services and indeed that's not a time for special worries yet - Ukrainian businesses have wide range of instruments to avoid this, but ... just a bit of discomfort: Why I should use complicated way of cash obtaining instead of simple transaction to my debit card ?

However next step will have more significant influence. It was announced today 23rd of April, 2010 that since year 2011 simplified tax system will be revised. This will impact all private enterpreneurs and SMB segment. At least they will be forced to stop their businesses or make it less attractive for investing. Anyway, business models which are including private enterpreneurs potentially should be revised.

Concluding this article: Yes,Azarovschina returned. Yes, businesses will be impacted.