Tax increase is unavoidable, but the government’s draft law will be finalised - Hetmantsev

Tax increase is unavoidable, but the government’s draft law will be finalised - Hetmantsev

The Verkhovna Rada must decide to increase taxes, but the parameters of the tax model proposed by the government may be revised.

The head of the Verkhovna Rada Committee on Finance, Tax and Customs Policy, Danylo Hetmantsev, reported this on Telegram.

“The bill developed by the government (on raising taxes - ed.) is not optimal from the point of view of the fiscal burden, administration, compliance with the EU acquis and possible imbalances for the economy. It requires significant refinement. However, raising individual taxes to cover the deficit in financing military spending , unfortunately, cannot be avoided,” Hetmantsev wrote.

He stressed that parliament must find “a broad public compromise on this issue on the optimal set of tax initiatives, financing the budget through internal loans and additional reductions in budget expenditures.”

At the same time, Hetmantsev noted that the state budget revenue plan for the first half of 2024 was exceeded, aimed at UAH 90-100 billion, but this is not enough to cover the gap in financing the security and defence sector, which is estimated at UAH 500 billion.