The government of Ukraine is proposing a tax hike to fund its defense against Russia, sparking a public debate with businesses. The plan includes increasing defense spending by Hr 500 billion and raising $3.3 billion through higher taxes and duties. Major business associations oppose the move, arguing it will burden struggling businesses and encourage tax evasion.
Key figures like Oleg Gorokhovsky of Monobank and outgoing U.S. Trade Representative Penny Pritzker have criticized the tax hike, suggesting alternative revenue sources. Tech associations and think tanks have also voiced concerns, advocating for a VAT increase instead. Finance Minister Marchenko defended the plan, emphasizing the need to support defense amidst security challenges.
The proposed changes, including levies on car sales and individual taxes, require parliamentary approval. Lawmakers have the opportunity to present alternatives as the debate continues.
Business Editor