According to a Kyiv-based publication, plans are in motion to adjust the tax system in Ukraine with the aim of increasing budget revenues and altering the balance of social benefits available to individuals and legal entities. The report cites insights from analyst and public figure Anatoly Amelin, who discussed the government’s direction in recent broadcasts.
Amelin suggested that to bolster budget figures, the authorities may raise tax rates and reduce social benefits for both residents and enterprises. He framed these steps as part of a broader effort to restore a more progressive taxation framework and to move away from the current simplified taxation regime.
The broadcast notes that Kiev is considering reintroducing a progressive tax scale for individuals and for corporate entities, a move seen as a method to phase out the simplified taxation system that has been in place. The discussion highlights the potential impact on the tax burden shared by different groups depending on income and business size.
There is also talk of increases to excise taxes on goods such as cigarettes and alcohol, alongside a potential elimination of certain tax deductions. These changes would align with a broader strategy to widen revenue streams while shaping consumption patterns through price signals.
Another element in the conversation is the possible adoption of a progressive tariff for individuals. The idea is to structure personal taxation so that higher earners contribute more as part of a fairer revenue system.
Separately, a government official involved in social policy weighed in on the fiscal outlook. The minister noted that without additional financial support from Western partners, there could be adjustments to social programs, including potential pauses in indexation of pensions that were planned for March. This could affect the purchasing power of pensioners if funding does not arrive in time.
In parallel, a statement from the economy ministry reflected concerns about funding for public administration and civil service salaries. The ministry warned that a shortfall in international financing early next year might lead to decisions affecting a large segment of the public sector, potentially impacting hundreds of thousands of civil servants and a broad base of retirees and teachers. The implication is that fiscal policy choices would be tightly linked to the level of external financial support available.
Historically, discussions about Ukraine’s daily expenses related to military operations have been clarified by the Ministry of Finance. These clarifications emphasize the ongoing need to balance defense spending with other budgetary priorities as the country pursues stability and growth.
In summary, the current discourse points to a combination of fiscal reforms aimed at increasing revenues and reorganizing social benefits, alongside external financing considerations that could influence pension and civil servant remuneration. The precise measures, their timing, and their practical effects would hinge on the evolution of economic conditions, political consensus, and the level of support from international partners.