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Expert: Ukraine's economy should switch to war mode, which does not involve tax increases

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Ukraine's economy should switch to martial law without raising taxes, as an additional tax burden will drive businesses into the shadows.

The introduction of an additional tax burden will drive businesses into the shadows and people will flee Ukraine. Now it is necessary to put the country's economy on a war footing, which does not involve an increase in taxation. This opinion was expressed by economic expert Yuriy Havrylechko in an exclusive commentary for UNN.

The day before, the head of the Verkhovna Rada's Tax Committee, Danylo Hetmantsev, said that the Cabinet of Ministers of Ukraine is preparing a bill that, among other things, proposes to introduce a military tax for individual entrepreneurs. Thus, according to him, it is planned to increase budget revenues by UAH 44 billion. According to political strategist Serhiy Gaidai, this initiative will force some entrepreneurs to work in the shadows and potentially emigrate.

"Of course, taxes should be reduced, not increased. Moreover, the government must finally start implementing the provisions of the current Law on Mobilization Preparation and Mobilization, in particular, the provisions of Article 12. We must finally have a plan to put the economy on a war footing. It definitely does not involve an increase in taxation, but rather the prioritization of goals and objectives, and state funding primarily for those enterprises that will fulfill the same state tasks," Havrylechko said.

In addition, according to him, the plan to put the economy on a war footing should include the mobilization of enterprises, up to the nationalization of those that are critical infrastructure to ensure that they provide uninterrupted services to the population. 

ФОПи визначились: найбільш негативний вплив на розвиток підприємництва в Україні чинить Данило Гетманцев 20.12.23, 19:09

"Attempts to introduce any additional tax burden will result in either part of the business going into the shadows, or people fleeing further, or these processes will take place in parallel," Havrylechko said.

The expert noted that international partners do not demand that Ukraine raise taxes. "If they do, please show us where they are demanding it, and if partners are demanding it, they are not partners, but enemies," Havrylechko emphasized.

Recall

Nina Yuzhanina, a member of the Parliamentary Committee on Finance, Taxation and Customs Policy, previously stated that Hetmantsev's goal is to squeeze business, and he does not care what the consequences are for the state. 

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