Tax increase will affect business, but it is a necessary step - Marchenko
Kyiv • UNN
Sergiy Marchenko said that tax increases will affect business, but there are no other options. Ukraine is close to the limit of domestic borrowing and has commitments to the IMF on debt sustainability.
The tax increase in Ukraine is a forced step that will also affect business due to limited financial resources. This was stated by Minister of Finance Sergii Marchenko during the discussion “Tax Increase and the New Social Contract” of the New Country project of LB.ua and EFI Group, UNN reports.
Details
Raising taxes is a necessary step. Yes, we understand the consequences, we understand that it will affect the business, but do we have any other options? I will tell you frankly that we have almost exhausted these options. At the beginning of the war, we significantly increased the volume of domestic borrowings. Now we are close to the limit beyond which any new borrowing does not create new expenditures. They simply feed the system. That is, all you borrow is to repay the payments made and service these payments
He noted that Ukraine has an obligation under the IMF program to maintain debt sustainability within the program, which implies stability of the debt market.
Recall
On Tuesday, September 17, the Verkhovna Rada of Ukraine voted 241 in favor in the first reading of draft law No. 11416d to increase taxes by UAH 58 billion this year and UAH 137 billion next year.
