International donors and creditors provide Ukraine with either weapons or financial support, which may be aimed at non-military purposes (social sector, reconstruction, etc.). The army is directly financed from internal revenues to the state budget. By the end of the year, about 300 billion hryvnias will be needed to support the armed forces.
Currently, the Cabinet of Ministers is considering opportunities to increase revenues to the state treasury. There are several ways to fill the budget – in particular, it is about increasing taxes.
What taxes will be raised?
The government is considering increasing the rate of budget-forming direct and indirect taxes. An increase in value added tax (VAT) and military duty is expected. The size of various excise duties may also increase.
For ordinary Ukrainians, in the end, this means an increase in the price of goods of daily use, because each of us pays VAT every time we visit any store.
The tax hike will have a negative impact on an economy that is just beginning to recover. However, in the current conditions, such a step is forced.
How else can you fill the budget?
Another possible source of income is the fight against smuggling and bringing business out of the shadows. The first steps on this path have already been taken. In particular, a large-scale inspection of the tobacco market took place in April. It turned out that almost every fifth cigarette in Ukraine is counterfeit.
Already in May, the law enforcement officers conducted searches at the 5 largest tobacco production enterprises, regarding which there is confirmed information about illegal activities. At some enterprises, counterfeit excise taxes or unlabeled tobacco products were discovered. The BEB is currently investigating this matter.
