Members of the European Business Association (EBA) call on the government to find alternatives to raising taxes for business, instead of supporting draft law No. 11416-d, which provides for an increase in the tax burden. About this informs LigaBusiness.
The association expressed its understanding of the increase in defense spending and the need for additional budget revenues of 500 billion hryvnias, but emphasizes that the proposed tax changes may unfairly hit honest business. Such a step, in their opinion, can cause devastating consequences for the country’s economy.
The EBA suggests that the government focus on the fight against the shadow economy. The association emphasizes the importance of reforming customs, improving the efficiency of law enforcement agencies, and improving the work of the Bureau of Economic Security.
Also, in the opinion of the EBA, it is necessary to consider measures to solve the problem of shadow employment, fight against payments “in envelopes” and gray schemes in electronic commerce. They also suggest reconsidering approaches to the taxation of the car market, especially for used cars.
In addition, the association emphasizes the importance of transparent calculations of the economic effect of tax increases in order to understand not only the possible revenues, but also the general consequences for business, investment and the economy as a whole.
According to the EBA, the increase in taxes may not increase revenues to the budget, but lead to the collapse of business, which in turn will have a negative impact on state finances.
