It is not advisable to increase taxes now, business will simply go into the shadows. The authorities should look for other opportunities to fill the budget and work to reduce costs.
This was stated by Mikhail Strelnikov, Chairman of the Ukrainian Financial Literacy Association.
“Tax rates can be raised to a separate level. We already have this level. If we continue to raise rates, then budget revenues will decrease. That is, it is common knowledge,” Strelnikov explained.
According to him, in case of a further increase in the level of taxes, the economy will go into the shadows.
“The entrepreneur agrees to share taxes with the state, if this does not go beyond reasonable limits,” Strelnikov noted.
In his opinion, small and medium-sized businesses in general should be exempted from paying any taxes, because entrepreneurs create jobs, reduce government spending on employment of people, on the maintenance of the unemployed.
“In the UK, if a small business has up to 10 employees and somewhere in the order of several million a year of income, it is not subject to any taxes at all. And this is explained by the fact that the employer, recruited these 10 workers, took away the care of their employment from the state. The budget spends less on the employment fund, spends less on unemployment, spends less on the pension fund. That is, revenues (budget – ed.) can be replenished, either by trying to raise taxes, or by cutting costs, “Strelnikov said.
Earlier, MP, leader of the Golos faction, Yaroslav Zheleznyak, said that the authorities should help entrepreneurs survive during the current crisis, and that it is necessary to expand business support programs and offer tax incentives, rather than increase taxes.
At the same time, investment analyst Eric Nyman said that the increase in taxes will provoke a slowdown in the economy and lead to higher prices for goods and services.
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