Ukraine plans to raise taxes - Forbes

The Ukrainian government is considering options for raising tax rates. The goal is to collect the missing 500bn hryvnyas for the needs of the army. This was reported by Forbes, citing sources in the Cabinet of Ministers and the Verkhovna Rada.

In particular, the military levy in the government plans to increase from 1.5 to 5%. The same tax rate of 5% may be introduced for individual entrepreneurs working on the simplified system of taxation. At the same time, the level of VAT increase has not yet been finalised. The probable increase is at the level of 2-3%.

As Forbes experts have calculated, an increase in the rate of military levy from 1.5 to 5% for salaried employees (without taking into account the possible introduction of military levy for FLP) can bring the budget an additional UAH 90-100 billion per year. And raising the VAT rate by 1% will give about UAH 40 billion of additional annual revenues. If the VAT rate is raised by 2-3%, budget revenues may increase by UAH 70-120bn.

It is noted that the government is finalising changes to the tax legislation and the document may reach the parliamentarians as early as in early July.

The newspaper's sources note that if taxes are raised, the new rates will take effect in autumn.