Up to 25% of small businesses in Ukraine, particularly in communities with a high level of security risk, could close if VAT is introduced for individual entrepreneurs. This information was published by the head of the Association of Frontline Cities and Communities (AFCC), Kharkiv Mayor Ihor Terekhov, UNN writes.
"Systemic support for the frontline economy is not just about new institutions; it's about the consistency of all state policies. Here we face decisions that can nullify the effect of any development tools. One of them is the possible introduction of VAT for individual entrepreneurs with an income exceeding UAH 1 million. According to estimates, the introduction of this tax could lead to the closure of 15-25% of small businesses in communities with a high level of security risk," emphasized the head of the AFCC.
He stressed that this would mean the loss of thousands of jobs and an even greater outflow of people from frontline territories.
"During wartime, tax policy should strengthen local resilience, not undermine it. If businesses cannot operate, the state will lose not only its tax base but also control over territories, jobs, and social stability. The frontline economy needs adequate support tools. The sooner we launch them, the greater the chances that they will become drivers of Ukraine's post-war recovery," Ihor Terekhov noted.