Taxes in Ukraine will definitely increase, but the Verkhovna Rada may not approve the government's initiative on a military levy. Instead, they may increase VAT, said Parliament Speaker Ruslan Stefanchuk in an interview with Ukrainian News.
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Stefanchuk's position
“There is a philosophy that the government has proposed – to take a little in many places to demonstrate the need for a very specific figure to be received by the budget. There is another model – to take one tax that has the broadest service base, namely the value-added tax, and increase it by a certain percentage,” Stefanchuk noted.
The decision to increase taxes in a certain form will depend on the discussion in the parliamentary tax committee.
Read: Military tax and excise tax on sweet drinks: The Cabinet of Ministers has decided which taxes to increase
“I expect the first hearings in the committee, after which we will decide on a probable model,” the Chairman of the Verkhovna Rada emphasized.
Background
On July 18, the Cabinet of Ministers approved two bills: the first – on amendments to the Tax Code to finance additional military spending, the second – amendments to the state budget to increase military spending.
Read: Taxes on deposits may increase: how will banks react
The Ministry's position on increasing VAT
As noted by the Ministry of Finance, increasing the value added tax (VAT) has its consequences, which will negatively affect all citizens, especially vulnerable categories.
The Ministry believes that increasing VAT will automatically lead to an increase in prices for essential goods, in particular, medicines and basic food products: bread, milk, butter, etc.
Read: The government explained why they will not raise VAT
- Taxes Economy