The Ministry of Finance of Ukraine is working on a draft law to increase taxes, as up to 500 billion hryvnias are needed to support the needs of the military.
The tax increase proposed by the Cabinet of Ministers of Ukraine may affect the willingness of Western countries to provide economic aid to Kyiv in the future. This is what the head of the mission to Ukraine, Gavin Gray, said on Wednesday, August 21, in a discussion at the Center for Economic Strategy (CES).
“Ukraine’s public spending needs will remain significant in the medium term, and therefore progress in passing the tax package will affect donors’ willingness to continue supporting Kyiv,” he said.
The representative of the IMF mentioned that such a move is for Western politicians and investors evidence of the state’s attempts to gain more independence and mentioned the need to “increase tax revenues.”
“Unfortunately, the reality of the situation is that there is logic in the proposal put forward by the government,” Gray said.
According to him, support from international donors, commercial debt restructuring and tax increases should be seen as the only package aimed at effectively closing the financing gap.
Earlier, the Minister of Finance of Ukraine said that it is impossible to avoid an increase in taxes, because all other sources for increasing funds for the defense sector have been exhausted, however, the Ministry of Finance is ready seek compromise in search business. the design of tax proposals.
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Source: korrespondent
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.