A two-hour meeting between representatives of the Council of Entrepreneurs and government officials, including the Office of the President, the government, and the Verkhovna Rada, was held to discuss proposals for tax increases. However, the meeting ended without any concrete decisions.
The majority of the meeting was focused on business proposals for alternative ways to supplement the budget. Two people who attended the meeting said the discussion was more about alternative sources of revenue than tax changes.
Among the proposals voiced by members of the Entrepreneurs' Council were the following measures to de-shadow the economy:
- fight against salaries in “envelopes”;
- countering tax optimization schemes through the creation of a large number of individual entrepreneurs;
- auditing businesses that pay taxes below the industry average, with the aim of encouraging them to pay a higher amount;
- measures to de-shadow customs and combat smuggling.
According to one of the participants who attended the meeting, the businessmen did not provide specific calculations on how the proposed measures could affect the budget.
The possibility of canceling the “Ukrainian cashback” program, which could cost the budget from 1 to 3 billion hryvnias this year, depending on the implementation model, was also discussed.
Civil servants agreed with the need for de-shadowing, but noted that this process would not yield quick results, while funding for the army is needed now.
While a tax increase seems inevitable, questions about specific measures remain open, and discussions will continue at the level of relevant committees. One possible alternative to the military levy is a VAT increase, but final decisions have not yet been made.
