Games with the Tax on the withdrawn capital

Previously, it was ex-Minister of Finances Danyliuk who “prevented” the cancellation of the profit tax. At least, the official version says that the fault lay with him. Oksana Markarova, who replaced him in this post, decided to first “figure it all out” in order to take a balanced approach to the budget. Whole summer long, there was a working group at the Ministry of Finance operating. It was supposed to assess the possible losses and agree on compensators. September 15, which is the deadline for the government’s submission of the budget-2019 to the parliament, is around the corner. What should entrepreneurs expect?

The newly established group surprised from the very beginning: what is the point in counting something that has already been counted several times? After all, the Ministry of Finance and the Ministry of Economic Development and Trade have already counted and estimated the budget losses during the first year at the level of UAH 26-30 billion. The working group started its activities with the fact that the Finance Ministry suddenly announced an amount of 52 billion, and even started counting the proceeds in a different way.

And last week, on the eve of presentation of the state budget, the most interesting came to the surface – all the proposed compensators have already been used for patching up the current budget holes, and nothing substantial has been left for the introduction of the tax on withdrawn capital. The government has somehow forgotten about the plan to collect 100 additional billion from customs schemes by the end of the year, or is going to “divvy them up ” in the last days of this year.

Looks like in the next year the authorities do not plan to fight the schemes at the customs, or they do plan, but do not know how to calculate the plan.

One thing is clear: according to the authorities, there are no more available compensators. Apparently, there is nothing left for the tax on withdrawn capital.

This situation is very similar to the situation with the negotiations with the IMF. For more than a year, we have not been able to receive the planned tranches because of the absence of tangible reforms – the financial police have not been established, the customs reform has not been launched, the government does not even have a model of the land market, and now the only thing it can do is to urgently raise gas tariffs.

The situation with the tax on withdrawn capital is practically the same: the authorities have been delaying the process, resisting it, waiting until the last moment. And now they are shrugging their shoulders saying there are not enough compensators. And they wanted to introduce this new tax so much, they tried so hard, promised it for so long – but they did not manage.

If the Presidential Administration and the government thought about the interests of the country, and not about elections, then everything would have been different. Meanwhile, the state is losing its future!

Tetyana Ostrikova
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