Tax hike will not significantly affect investor sentiment - Ministry of Economy
Kyiv • UNN
Deputy Minister of Economy Volodymyr Kuzio said that investors are more interested in project payback than tax rates. The key factors are infrastructure, logistics, and integration into global supply chains.
Investors are paying attention not so much to taxes as to the possibility of a quick return on investment and ensuring the stable functioning of their business in international supply chains. This was stated by Deputy Minister of Economy Volodymyr Kuzio in a commentary to UNN.
In fact, it is important for investors to show the final return on their investment. They consist of different elements, so the main point for investors is what is the payback of this investment and for how long. I would not focus on the topic of taxes - yes, it is important, but investors are more interested in "what kind of project it is" and what kind of return on investment they expect
He noted that even with zero taxes, investors will not invest if they do not have a clear idea of the final profit.
"Even if there are zero taxes in the country, but there is no clear business plan and no place to invest and make a profit, investors will not come. They need energy resources and logistics infrastructure, whether their business will be a component of the global production chain, and the speed of its export from the country. They need supply chains to work," said the Deputy Minister of Economy.
Kuzio added that from the point of view of the Ministry of Economy for investors, infrastructure and the speed of customs procedures for goods for the next component in value chains are important.
These are the points that are important for investors, and they will not be scared by tax increases. And customs reform can increase the number of interested investors
Recall
The Verkhovna Rada plans to consider the draft law, which provides for an increase in taxes, in mid-October, but its provisions will come into effect on October 1.
