Ukraine may soften the bill on the introduction of a value-added tax for entrepreneurs, which requires the International Monetary Fund to approve a loan of over $8 billion.
Ukraine may soften the bill on the introduction of a value-added tax for entrepreneurs, which requires the International Monetary Fund to approve a loan of over $8 billion.
According to Bloomberg, the Ukrainian Ministry of Finance is finalizing a bill that would raise taxes for businesses. However, it is opposed by President Volodymyr Zelensky, Prime Minister Yulia Svyrydenko and other officials.
Initially, the bill envisaged the introduction of a value-added tax in Ukraine for self-employed entrepreneurs with an annual income of over one million hryvnia. However, after public criticism, the decision was revised, and Zelensky allegedly reprimanded Finance Minister Serhiy Marchenko for agreeing to such unpopular IMF conditions.
The Ministry of Finance is currently planning to soften the bill and raise the income threshold for paying VAT to two or four million hryvnias, the publication’s sources reported. The head of the Servant of the People faction, David Arakhamia, said that the government is leaning towards the option of four million hryvnias.
The ministry planned to submit the bill to the government last month, but has now postponed it until February 10.
Recall that the Office of Effective Regulation (BRDO) believes that the current government plan to introduce VAT for individual entrepreneurs with a threshold of UAH 1 million could lead to the closure or shadowing of a quarter of small entrepreneurs in the service sector. Instead, they propose implementing a European approach.
