In an interview with Forbes Ukraine, the head of the National Bank of Ukraine (NBU), Andrii Pyshnyi, emphasized that the planned increase in taxes in Ukraine will have a comprehensive positive effect on the economy, contributing to an increase in economic activity.
Effects of tax increases
Pyshnyi noted that most of the proposals that have already received the support of the parliament are taken into account in the July macro forecast of the NBU from the point of view of their impact on inflation. The biggest impact on the economy is expected to come from a possible increase in value added tax (VAT), although this issue is currently not under consideration. According to him, the remaining impacts from the planned changes are moderate.
“Maybe it looks strange, but fiscal easing will allow all these additional withdrawals to eventually return to the Ukrainian economy in the form of government funding. It can even stimulate economic processes," Pyshnyi explained.
Forecast of inflationary influence
Speaking about the possible inflationary impact, the head of the NBU 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 will remind that on September 17, the Verkhovna Rada adopted in the first reading the draft law No. 11416-d on tax increases, which provides:
- An increase in the military tax rate from 1.5% to 5%.
- Distribution of this fee to individual entrepreneurs (FPOs).
- Introduction of an additional tax on excess profits of banks.
Deputy Yaroslav Zhelezniak said that taxes can be increased "retroactively" from October 1, since the law will be considered in the second reading no earlier than mid-October.
