Chairman of the Verkhovna Rada Committee on Finance, Tax and Customs Policy, Danylo Hetmantsev stated about the need for an additional allocation of at least UAH 300 billion to finance the Ukrainian army by the end of the year. According to him, these funds must be found within the country, since borrowing from Western partners for military needs is impossible.
The Cabinet of Ministers of Ukraine assesses the needs of the army, and, according to Hetmantsev, they are “very large.” To cover these costs, it is planned to increase both the expenditure and revenue parts of the budget, which may mean an increase in basic taxes, including VAT, income tax and excise duties.
Hetmantsev admits that raising taxes will have a negative impact on the economy, but emphasizes the lack of alternative options in wartime. He also assured that control over the spending of funds will be strengthened, and the fight against shadow and smuggling will continue.
“The only two real sources of financing a great war are borrowing and taxes.”, – emphasized Hetmantsev. He expressed hope that the fight against looting and illegal activities during the war would help strengthen the country’s tax base.
