The Chairman of the National Bank of Ukraine (NBU), Andriy Pyshny, emphasized in an interview with Forbes Ukraine that the planned tax increase in Ukraine will have a comprehensive positive effect on the economy, contributing to an increase in economic activity.
Effects of tax increases
Pyshny noted that most of the proposals that have already received parliamentary support are included in the NBU's July macro forecast in terms of their impact on inflation. The greatest impact on the economy is expected from a possible increase in value-added tax (VAT), although this issue is not currently being considered. According to him, the remaining impacts of the planned changes are moderate.
“It may seem strange, but fiscal easing will allow all these additional withdrawals to later return to the Ukrainian economy in the form of government funding. This may even stimulate economic processes,” Pyshny explained.
Forecast of inflationary impact
Speaking about the possible inflationary impact, the NBU Chairman noted that it is already taken into account in the forecasts and is not expected to lead to additional negative consequences for the economy.
News about tax increases
We would like to remind you that on September 17, the Verkhovna Rada adopted in the first reading draft law No. 11416-d on increasing taxes, which provides for:
- Increase in the military levy rate from 1.5% to 5%.
- The distribution of this fee to individual entrepreneurs (IEPs).
- Introduction of an additional tax on excess profits of banks.
Deputy Yaroslav Zheleznyak reported that taxes may be increased "retroactively" from October 1, since the law will be considered in second reading no earlier than mid-October.
