The increase in taxes in Ukraine will not have a significant impact on the inflation rate.
Increase in taxesin Ukraine will not affect the prices of goods. After all, additional budget revenues will return to the economy due to budget expenditures.
This was reported by Deputy Head of the NBU Serhiy Nikolaychuk.
He explained that in July 2024, the National Bank calculated changes in the inflation rate. The NBU report spoke about possible effects in the event of an increase in tax rates, including VAT.
“At the same time, analyzing the package of initiatives submitted to parliament, we came to the conclusion that most of them will have a predominantly neutral impact on prices,” Nikolaychuk said.
He added that the increase in taxes will be balanced by the fact that additional budget resources will return to the economy in the form of expenses. This will not put pressure on demand and increase prices.
Recall:
On September 17, parliament approved the corresponding bill (No. 11416-d) in the first reading. The document is expected to be adopted in the second reading by mid-October, and if approved, the tax changes may be introduced retroactively from October 1.
It is expected that from October, the increase in taxes will additionally replenish the state budget by UAH 58 billion in 2024 and UAH 137 billion in 2025.
The main source of this revenue is an increase in the military tax on citizens' income from 1.5% to 5%.
And from 2025, taxes will also be increased for individual entrepreneurs. The purpose of such changes is to balance the budget, the ability to continue Ukraine's defense, and to coordinate the requirements of international partners.