The tax system in Ukraine from July 1, 2023 will return to the norms that were in force before the full-scale invasion of the Russian Federation. We are talking not only about the abolition of the preferential 2% rate for business, but also on the return of tax audits and fines.
Such a decision is necessary because the tax collection is not enough to cover the costs of the war. This was announced by the head of the Committee on Finance, Tax and Customs Policy of the Verkhovna Rada Daniil Getmantsev on the air of the all-Ukrainian telethon. Yes, from July 1 offered:
- abolition of 2% VATwhich was introduced in the spring of 2022 for businesses with a turnover of up to UAH 10 billion;
“We believe that it has played its role and agree with the IMF that it should be canceled from July 1,” the people’s deputy explained. The introduction of benefits from the very beginning was temporary: “[Тоді] we assumed that the war would be short-lived,” Getmantsev noted earlier.
- resumption of documentary checks in those territories where there are no hostilities;
- refund of fines for non-fulfillment of tax obligations in those territories where hostilities are taking place.
“In fact, this is how the tax system is brought to the rules that existed in peacetime, before the start of the active phase of the war,” Hetmantsev summed up. Marchenko also noted that the tax system of Ukraine does not undergo significant changes.
Ukraine does not have the right to finance the army directly from international financial assistance. Given the huge military spending, we have to look for other sources of income, which was also stated by Finance Minister Sergei Marchenko at a meeting with business representatives.
According to Marchenko, for the war Ukraine spends UAH 130 billion per month. And monthly tax revenues, as Hetmantsev calculated, amount to only 80 billion hryvnias.
“That is, we collect the rest through borrowings, bonds. Our partners do not give money for security and defense, this is money that we must collect within the country,” Getmantsev added.
As GLOBAL HAPPENINGS reported, payment terminals in Ukraine have become mandatory for all trade in settlements with a population of more than 25,000 people. The rules have been tightened since January 1, 2023.
Source: Obozrevatel
I am a journalist who writes about economics and business. I have worked in the news industry for over 5 years, most recently as an author at Global Happenings. My work has focused on covering the economy news, and I have written extensively on topics such as unemployment rates, housing prices, and the financial crisis. I am also an avid reader and have been known to write about books that interest me.
