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Укр Tax increases in Ukraine are unavoidable: Government lacks UAH 500 billion
During a broadcast on NEWS LIVE, Andriy Dubas, President of the Association of Ukrainian Banks, spoke about the urgent need to raise taxes in Ukraine. According to him, the government is facing a budget deficit of about UAH 500 billion, which forces it to look for additional sources of revenue, including by increasing taxes.
Andriy DubasPresident of the Association of Ukrainian Banks
“Of course, raising taxes is very unpopular. But what other options do we have, you know? We have no other options,” said Andriy Dubas.
He emphasized that the mere discussion of a possible tax increase is already causing significant changes in the market. In particular, he cited the example of car importers who, upon learning of a possible 15% increase in the tax on imports of new cars, began to buy foreign currency en masse and contract supplies in advance to avoid additional costs.
A similar situation occurred earlier in the fuel market, when importers, expecting an increase in excise taxes, also contracted supplies in advance and bought back foreign currency. This led to a short-term jump in the dollar to 41.80 hryvnia, which was, however, stabilized by the National Bank.
“We will most likely not be able to avoid raising taxes,” summarized the President of the AUB. He also noted that the banking sector has already felt the pressure of an increased tax burden when banks paid a higher income tax rate of 50% in 2023.
Andriy Dubas noted that the current situation requires the Government to take unpopular decisions to ensure the financial stability of the country under martial law and significant spending on defense and social needs.
