Tax and accounting insights for Ukraine
06.11.24
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The IMF considers the Ukrainian tax system unfair

The Ukrainian tax system is inherently unfair in terms of who pays taxes and who does not.

This was stated by Trevor Lessard, Deputy Head of the IMF Mission to Ukraine.

"And this dynamic has social, political, and economic consequences. So, people who are currently paying taxes don't really want to pay more until people who are not paying them start paying a little bit."

Therefore, according to him, our country should move towards establishing tax justice.

MP Nina Yuzhanina considers this good advice, which has not been and will not be implemented. This is our "political will".

And about the VAT, which the government is intensively preparing us for in the information space:

"I think that if you need immediate revenues and you want to do it in an efficient, large-scale way that will provide you with revenues next month, it is difficult to imagine a better policy option than raising the VAT rate." - said Trevor Lessard.

In her turn, Yuzhanyna reminded about the ongoing discussions in the Tax Committee of the Verkhovna Rada: VAT or military tax?

The Ministry of Finance then said that they preferred both.

Taxpayers, of course, preferred neither.

And no one noticed that with such "administration" of VAT, it means more problems for business.

"Maybe we need to remind once again that more than 20 thousand VAT payers (15% of those who submit tax invoices) have their registration blocked, despite the fact that more than 17 thousand prove their right by spending a lot of time and effort," the MP is outraged.

"And it would be important to know the real reason why the law on tax increases has been awaiting the President's signature since October 15. As before, I DEMAND a veto on this unconstitutional manifestation of lawmaking," she writes.

Nina Yuzhanina
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