27.05.2022
The economy is forecasted to slump by 30–50%. Broken logistical ties require investments to restore foreign trade. There is a growing need for social welfare and recovery.
Keynote points of the discussion and abridged expositions of speaker reports are published below.
Keynote Points:
- Tax benefits substantially decrease the revenue side of the budget of Ukraine: customs benefits, liberalisation of fiscal administration, inspection moratoriums, cancelled liabilities and the easing of penalty and fine payment rules.
- Since the start of the military action, the Cabinet additionally earmarked UAH314 billion for the defence budget.
- The economy is forecasted to slump by 30–50%. Broken logistical ties require investments to restore foreign trade. There is a growing need for social welfare and recovery.
- Three tax reform packages have been adopted to: 1) relieve the taxpayers of liability because of the impossibility to fulfil their fiscal responsibilities; withhold tax inspections and due dates; 2) expand the system of simplified taxation at 2% rate; reduce tax on fuels by imposing a flat excise duty and 7% VAT; 3) relieve from import tax payments during the importation of goods, vehicles with flat customs duty rates (VAT, excise and import tax).
- The budget revenues are in the risk zone; the expenditures are high and continue growing. Most of the budget expenditures are used for defence, law enforcement and revised social support.
- The fuel crisis is stifling economic activities and the pace of economy’s adaptation to wartime conditions.
- It will be necessary to grow the throughput capacity of customs clearing stations to boost the foreign economic activity.
- A full restoration of the e-VAT administration system has been announced.
- There is an expected trend in international financial assistance increase, which will help to level the expenditure side of the budget and recover the economy.
Transcript of discussion (please follow the link)