Ukrainians oppose tax hikes and advise authorities to fight corruption to fill the budget - poll (video)

In a poll conducted by UNN, Ukrainians advise the authorities to fight corruption first and foremost, instead of raising taxes. They believe that an increase in the tax burden could lead to a decrease in donor support for the army.

The government submitted to the Verkhovna Rada draft laws on tax increases and amendments to the 2024 state budget. The Cabinet of Ministers proposes to the Parliament to increase the military tax rate to 5%, and for some transactions to 30%. Danylo Hetmantsev , chairman of the Verkhovna Rada Committee on Finance, Taxation and Customs Policy, supported the government's initiative, noting that he sees no other options than to accept the Cabinet's proposal to raise certain taxes (military duty, excise taxes, in particular on fuel and tobacco), increase the relevant tax base, and place more government bonds, which may also include NBU issuance.

"Yes, this is a bad decision that will hinder economic recovery, the growth of citizens' incomes, and potentially pose risks to macrofinancial stability. However, there is no other way than to close the gap in the military now, because in a few months we will face a significant shortage of funds for the current maintenance of the army, which will begin to deepen sharply by the end of the year," Hetmantsev wrote.

The head of the Rada's tax committee has repeatedly voiced the idea of raising taxes in Ukraine. According to economic expert Yuriy Havrylechko, the elimination of the tax and customs services and the transfer of the economy to a war footing may be an alternative to Hetmantsev's idea to raise taxes to close the budget gap

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Earlier, Yaroslav Zheleznyak, deputy chairman of the parliament's tax committee, criticized the draft law that provides for tax increases. According to him, it is not clear why such tax changes are proposed and what calculations they are based on.

In addition, mobile operators operating in Ukraine believe that if the parliament supports the government's initiative and raises taxes, it will be a step backwards in the availability of mobile communications, which is critically needed in times of war.

The initiative was also criticized by experts and representatives of Ukrainian business. They believethat an increase in the tax burden will force entrepreneurs to "go into the shadows.