The results of a recent survey show that the majority of Ukrainians are against raising taxes and consider the fight against corruption the most effective way to fill the state budget. The study, conducted by an independent sociological service, notes a significant negative public reaction to potential changes in tax policy and offers a new perspective on ways to finance the state.
Ukrainians believe that an increase in the tax burden may lead to a decrease in the support of the army with donations.
The government submitted draft laws on tax increases and changes to the state budget for 2024 to the Verkhovna Rada. The Cabinet of Ministers proposes to the Parliament to raise the rate of the military levy to 5%, and for some operations to 30%. The Chairman of the Verkhovna Rada Committee on Finance, Tax and Customs Policy, Danylo Hetmantsev, supported such a government initiative, noting that there are other options than agreeing to the proposal of the Cabinet to raise certain taxes (military levy, excise taxes, in particular, on fuel and tobacco), to increase the corresponding tax base, as well as to place more OVDP, which may also involve the emission of the NBU, does not see.
"Yes, this is a bad decision that will hold back economic recovery, the growth of citizens' incomes and potentially carry risks for macro-financial stability. However, there is no other way than to close the gap in the military, because in a few months we will face a significant shortage of funds for the current maintenance of the army, which will begin to deepen sharply by the end of the year," Hetmantsev wrote.
The chairman of the Tax Committee of the Council has repeatedly voiced the idea of raising taxes in Ukraine. According to economic expert Yurii Havrilechko, the liquidation of the tax and customs offices and the transfer of the economy to military lines can be an alternative to Hetmantsev's idea of raising taxes to close the budget hole
The draft law, which provides for an increase in taxes, was previously criticized by the deputy chairman of the tax committee of the parliament, Yaroslav Zhelezniak. According to him, it is not clear why such tax changes are proposed and on what calculations they are based.
In addition, mobile operators operating in Ukraine believe that if the parliament supports the government's initiative and raises taxes, it will be a step back in the availability of mobile communication, which is critically needed in wartime conditions.
The initiative was also criticized by experts and representatives of Ukrainian business. They believe that an increase in the tax burden will force entrepreneurs to "go into the shadows".
