The budget for the development or waste, plunder, and establishment of a police state?

Samopomich parliamentary faction cannot support the draft state budget prepared by the government, because it is not a development budget but a budget of waste, plunder, and creation of a police state. The faction believes that a number of fundamental changes must be introduced to the document.

  1. Subsidies are not an option

The government allocated money for financing subsidies, which are a black hole in the state budget of Ukraine, and at the same time does not give the population of Ukraine any tools aimed at reducing consumption.

There are over 50 billion allocated for subsidies, while there are only 400 million provided for energy efficiency measures that would enable people to reduce heat consumption. Whereas, it would be worth allocating several billions for “warm credits”, which are really popular with people. The amendment of Samopomich which would correct the situation, unfortunately, was not taken into account.

  1. Stop robbing communities

Samopomich is totally against the curtailment of financial decentralization and against the fact that in this budget the government is robbing every citizen of Ukraine by taking revenues from local governments to the central budget.

We are talking about the fact that now 80% instead of 50% of the personal income tax will be sent to the central budget; about the fact that these will be local budgets that will have to cover for debts and benefits for housing and communal services; we are talking about the underfunding of medical and educational subventions. We are calling upon the government – do not abandon your achievements in the creation of capable and financially independent communities.

  1. “No” to tax increases

The faction is totally against the unreasonable and economically unjustified increase in taxation (both direct and hidden). The government is being economical with the truth saying that it plans to raise taxes in the budget in 2018, because the Cabinet is raising excise rates for tobacco and other excisable products, as well as increases levies from mobile operators. Eventually, the consumers themselves – who  make up the majority of the population of Ukraine – will have to pay for this increase.

Moreover, because of the increase in the minimum wage, entrepreneurs of the first and second groups of the simplified tax will pay more of the single tax and more of the unified social tax. This means a hidden increase in the tax burden on the economy.

The money of taxpayers and entrepreneurs should not be spent on increasing the funding of law enforcement agencies, which then come to those very businessmen with unreasonable and unjustified searches, property seizures and receive illegal compensations from people whose money is spent on them in the first place.

Samopomich demands to stop increasing the funding of law enforcement agencies that are turning into repressive institutions, as well as of officials, bureaucrats from ministries, government offices, the Verkhovna Rada, and the Presidential Administration. Taxpayers’ money should be used primarily on the needs of taxpayers and their local communities, and not for maintaining the army of police and bureaucrats.

  1. Do away with the pressure on business

We demand to stop the practice when all law enforcement agencies visit entrepreneurs one by one. It is necessary to take away the relevant powers from the police and the prosecutor’s offices, make the Security Service fight terrorism, separatism, high treason and espionage, instead of dealing with the economy sphere.

It should be a newly created body – the Financial Police – that will operate in the economy sphere instead of all these law enforcement agencies. The Financial Police will punish the perpetrators – those who withdraw billions into offshore without taxation in Ukraine, those who bring cargo to Ukraine avoiding customs clearance, rather than visiting ordinary businessmen who pay taxes and whose money is actually spent on the law enforcement bodies.

  1. Create a strong army

Supporting the increase in the defense budget for the maintenance of the Ukrainian army, the faction simultaneously demands to introduce mechanisms for civil control and requires explanation of the money that is allocated today for the security and defense of the country. Each taxpayer has to understand what 5% of GDP – which make up the defense budget – will be spent on.

  1. Stimulate the economic growth

In addition, when voting for the budget-2018, it is necessary to introduce incentives for the development of entrepreneurship and economic growth in Ukraine. The cancellation of the profit tax and the introduction of the tax on the withdrawn capital are one of such incentives. This means that the money earned by an enterprise is not subject to profit tax as long as it is spent on the enterprise’s needs and is not withdrawn from it.

As long as the demands of the Samopomich Union faction on the inadmissibility of raising taxes, on the refusal to build a police state by increasing the funding of law enforcement agencies, the refusal to curtail financial decentralization, and on strengthening of energy efficiency measures will not be taken into account, the faction will not support this draft budget.

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