The Cabinet of Ministers of Ukraine is preparing a ‘radical’ tax increase soon

The Cabinet of Ministers of Ukraine is preparing proposals for a “radical” tax increase in the near future. They are planning to increase the military tax and value-added tax.

This was stated by the Chairman of the Verkhovna Rada Committee on Finance and Tax Policy, Danylo Hetmantsev, in the parliamentary corridors.

The MP stated that money is needed because hundreds of billions of hryvnias are lacking for army financing.

“These are very large sums of money that cannot be accumulated through pinpoint decisions or, say, through de-shadowing because the resource from de-shadowing is already being used. We already have budget overperformance, but this resource is not comparable to the needs we have. How to cover these expenses, we expect a position from the Cabinet of Ministers,” Hetmantsev said.

Hetmantsev had already mentioned that 300 billion hryvnias (€6,904,710,393) are lacking in the budget for the needs of the Armed Forces of Ukraine and “there is no alternative to raising taxes.”

“It is impossible to provide these funds without affecting the main taxes. Therefore, the changes will affect budget-forming direct and indirect taxes, including VAT, military tax, and excises,” Hetmantsev wrote on his Telegram channel.

And the head of the Ministry of Finance, Serhiy Marchenko, estimates the budget “hole” at 5 billion dollars, which is more than 200 billion hryvnias.