“The money that we lack for pensions and subsidies can be found at the customs and in offshores” – Ostrikova

The unbalanced government budget for 2019 is once again unfriendly towards small and medium businesses. MP Tetiana Ostrikova from the Samopomich parliamentary faction says these are entrepreneurs who are going to feel all the burden of taxes.

“The government expects an increase in revenues from the tax on the income of individuals. This is despite the fact that this year the actual revenue from this tax is in the amount of the planned one. Nothing indicates there should be an increase. This means that next year the government is going to impose taxes on a wide range of people.”

In reality, this means numerous checks from the State Labour Service at enterprises, mainly small and medium businesses. Inspectors will require the provision of various documents, they will look for unregistered employees. And it is often the case when huge fines are imposed, often without sufficient legal grounds.

At the same time, large business will go on living peacefully, the way it lives now. “The government is not going to substitute the income tax with the tax on withdrawn capital. Because large business today has large balance losses, which reduce taxable income. There are offshore schemes operating. Large business has all the tools to minimize or evade the income tax.”

And the government is not going to change this imbalance.

“Unfortunately, in the budget package, in changes to the tax and budget codes and the budget law, the government and the authorities do not present any anti-offshore laws or the so-called BEPS action plan, which could prevent withdrawing of funds abroad. And we are talking about 10 billion dollars annually.”

Ostrikova also recalled Hroisman’s loud promises to put an end to the schemes at the customs and collect an additional 100 billion from this by the end of the year.

“The schemes are still operating, we haven’t seen the revenues of 100 billion hryvnias. And, despite its loud statements, the government expects an increase in customs duties by only 40 billion for the next year. This means that these 40 billion will be due to nothing more than just the growth of imports, inflation and the exchange rate.”

In addition to small and medium-sized businesses, ordinary people will also suffer from the budget.

“The funds we lack to properly finance subsidies, pensions, and salaries to soldiers, not policemen, can be found, first of all, in offshores, at the customs, in economic growth, in the introduction of the tax on withdrawn capital.”

Unfortunately, the authorities think only about themselves, their protection and their prosperity.

“The financing of law enforcement agencies is increased in this budget again – it is suggested spending 18 billion more on the police, the SB, and the prosecutor’s office. So, the government is not going to eliminate today’s ineffective economic units of the SBU, the prosecutor’s office, and the police, and create a single body for financial investigations. The authorities benefit from providing security forces with money, since the latter will ensure the re-election of these authorities next year.”

Samopomich insists on reviewing both the revenue and expenditure side of the budget, taking into account the interests of entrepreneurs and ordinary Ukrainians.


object(WP_Term)#7738 (16) { ["term_id"]=> int(1) ["name"]=> string(4) "News" ["slug"]=> string(4) "news" ["term_group"]=> int(0) ["term_taxonomy_id"]=> int(1) ["taxonomy"]=> string(8) "category" ["description"]=> string(0) "" ["parent"]=> int(0) ["count"]=> int(4083) ["filter"]=> string(3) "raw" ["cat_ID"]=> int(1) ["category_count"]=> int(4083) ["category_description"]=> string(0) "" ["cat_name"]=> string(4) "News" ["category_nicename"]=> string(4) "news" ["category_parent"]=> int(0) }