The Ukrainian businessman called this proposal contrary to the interests of the economy and common sense.
The Ukrainian businessman called this proposal contrary to the interests of the economy and common sense.
The founder of the FRACTAL group of IT companies, Artem Borodatyuk, who is a member of the Council for Entrepreneurship Support under the President of Ukraine, sharply criticized the initiative of the Ministry of Finance to introduce VAT for individual entrepreneurs.
As a member of the Strategic Council of the Diia.City Unite Technology Business Union, he called this proposal contrary to the interests of the economy and common sense, especially against the backdrop of the recent failure in the Verkhovna Rada of Bill No. 14023 on the abolition of paper acts of completed work.
Borodatyuk, referring to his "libertarian vision," emphasized that increasing the tax burden and state intervention always leads to a weakening of the economy.
The entrepreneur is outraged by the government's choice of priorities: instead of simplifying business life (less paperwork and formalities), the state is trying to introduce the most difficult-to-administer tax for 660,000 small entrepreneurs. He called the officials' reference to the IMF's "structural beacons" an excuse that is already perceived as a meme in the business environment.
"In the business environment, the phrase 'structural beacon' has long become a kind of meme or even a curse word: business is struggling, and the government is throwing up its hands, saying, 'it's all the IMF, not us,'" Borodatyuk noted.
The founder of FRACTAL questions the Ministry of Finance's calculations of an additional 40 billion hryvnias in revenues, comparing them to the mythical "Polubotka gold."
"If we also eliminate administration, the net result will be UAH 39.9 billion per year. And globally it seems as if Polubotka's gold has been found, but in practice these figures will be shattered by reality," Borodatyuk criticizes the decision of the Ministry of Finance.
The founder of FRACTAL predicts that the consequence of such a decision will not be filling the budget, but a massive shadow economy: the fragmentation of businesses, the transfer of sole proprietorships to relatives, and, worst of all, a return to cash payments.
The entrepreneur emphasizes that in a country suffering from war and brain drain, it is unacceptable to complicate the work of "white" business. Borodatyuk urges that this initiative cannot be finalized or postponed, it must be stopped immediately.
As a reminder, People's Deputy Yaroslav Zheleznyak reported that the draft law on 20% VAT for individual entrepreneurs may be adopted in March 2026. Read about the possible consequences of introducing VAT for individual entrepreneurs here .
