Currently, there is no reason to increase the value added tax (VAT) in Ukraine, but the situation may change in the future. About this in interview “Ukrainian News” was told by the chairman of the Verkhovna Rada Committee on Finance, Tax and Customs Policy, Danylo Hetmantsev.
“Now we see that there is no reason to increase VAT, but we do not rule out that they will appear in the future… And this future may be in a month or later… A suitable proposal from the government may appear. Without it, we we won’t do anything”, the deputy explained.
He noted that it is necessary to take into account the position of the government and the amount of defense spending, which are the main argument for a possible increase in VAT. According to him, from the point of view of public finances, VAT is an appropriate source of budget replenishment, which causes the least damage to the economy compared to other possible taxes. However, the final decision on the need for an increase must be made by the government.
Hetmantsev also emphasized that the changes to the tax legislation adopted by the Council in the first reading are already a significant step in the direction of increasing revenues to the budget. In particular, we are talking about draft law No. 11416d, which was adopted by the Verkhovna Rada on September 17. This document foresees a significant increase in tax collections: by 58 billion hryvnias by the end of this year and by 137 billion in 2025.
“We must remember the needs not only until the end of the year, but also for the next year, when we still do not have 100% confidence in attracting all the volumes of foreign aid that we will need”Hetmantsev warned.
