Businesses should be prepared for tax hikes, the government will be tempted to make a "noose" - economist

The government will be tempted to make a "noose" for business to instantly increase budget revenues, so businesses should be prepared for tax increases. This opinion was expressed by Volodymyr Landa, senior economist at the Center for Economic Strategy, UNN reports.

"Decisions that kill business to get short-term benefits are bad decisions. The authorities will be tempted to make some kind of a stranglehold, perhaps to increase revenues in the moment. I think you have to be very careful with that," Landa said in an interview with .

According to him, the government will most likely have to cut budget expenditures. But there is little potential in this regard, because what could be easily cut has already been cut.

"The second is that (businesses - ed.) will most likely have to pay more taxes," Landa added.

He believes that it will not be a super radical decision, as it was with banks when they were faced with the fact that instead of 18% they had to pay 50% income tax.

The economist emphasized that predictability is important for business, and even if taxes are increased, "it should not be today for today." 

It is a very bad idea to make decisions that come into force today. In addition, if we say that businesses should pay more taxes, this cannot happen suddenly. It has to be done in a way that businesses do not face difficulties that they cannot overcome. If it needs credit, it should be able to get it. And it definitely should not be something radical. It should definitely be only what is feasible for the business

He also added that after the war is over, the state should switch to a system of the lowest possible taxes and attract foreign investment.

Add

Earlier, representatives of small businesses in a poll by UNN complained about the tax burden and advised the head of the Rada's tax committee, Danylo Hetmantsev, to think hard about reducing the burden on small entrepreneurs, as businesses are on the verge of closing. 

In addition, at a conference for small and medium-sized businesses where Hetmantsev was scheduled to speak, people dressed as geese with the inscription "Pinch me - don't touch business!" came. This is probably a reference to Hetmantsev's famous phrase : "What is proper taxation? It is the art of plucking a goose without it screaming." After the broadcast of Hetmantsev's address began, the "geese" began to walk around the hall in a demonstrative manner, and then turned their backs on Hetmantsev.

According to one of the participants in the performance, the tax policy shaped by Hetmantsev forces entrepreneurs to close their businesses or engage in open confrontation with the MP.

Recall

In an exclusive interview with UNN, Yana Matviychuk, volunteer, founder of the creative agency ARENA CS, member of the Bord Young Business Club , said that the tax policy implemented by Hetmantsev is strongly slowing down the Ukrainian economy and, if not stopped, will lead to its decline in the future.