The Cabinet of Ministers is not currently discussing tax increases.
This was stated by Prime Minister Denys Shmyhal during an ‘Hour of Questions to the Government’ in the Verkhovna Rada, Interfax-Ukraine reports.
‘We have not started and are not discussing the issue of raising taxes in the government,’ he said when former parliamentary speaker Dmytro Razumkov reminded him of his promise not to raise taxes after they were restored to pre-war levels.
At the same time, Shmyhal confirmed that the government would appeal to parliament for additional funds for the security and defence sector.
The Prime Minister reminded that the Ministry of Defence has UAH 1.7 trillion for this year, which is allocated only for the needs of the security and defence sector.
"This year, certain resources for the procurement of weapons and relevant military equipment have been approaching. Therefore, this year we will appeal to the Parliament for additional funds for the security and defence sector... But it will be in the second half of the year. The relevant calculations and needs will be presented additionally,’ Shmyhal said.
Finance Minister Serhiy Marchenko, who spoke before him, when asked about draft laws that could provide sources of revenue, thanked the Rada for initiating consideration of draft laws on increasing excise taxes on fuel and tobacco.
‘I hope that you will make a wise decision that will allow you to fill the state budget with appropriate taxes,’ he said, reminding that the adoption of this law could bring in UAH 16 billion this year.
According to Marchenko, it may result in a slight increase in prices ‘by a hryvnia or two’ for some products, which will have a negligible impact on inflation at 3.2%.
‘If we have other tax initiatives, I will also ask for your support, because today every hryvnia of taxes is money that was allocated to the security and defence sector, so we are trying to collect these funds very carefully,’ Marchenko said.
Earlier, Forbes, citing sources in the government and the Verkhovna Rada, reported on the government's plans to raise VAT and military duty.
As reported, on 10 April, the Rada exempted imports of goods for security and defence from VAT and customs duties.