There will be no tax increases until the end of the war: Shmyhal guarantees only return to previous level

Ukraine does not plan to raise taxes until the end of the war, but will only collect them within the limits corresponding to the pre-war level. This was stated by Prime Minister Denys Shmyhal during a nationwide telethon.

According to Shmyhal, the simplified taxation system for entrepreneurs is to be abolished on August 1. This means the return of the 5% tax rate, which will replace the current 2% rate that was introduced at the beginning of the full-scale war.

"We do not plan or predict any other changes, except for a return to the pre-war level, until the end of the war and I am sure we will not allow it. The tax system will be stabilized at the level it was before the full-scale aggression," the Prime Minister said.

As a reminder, on July 1, the preferential 7% VAT rate on fuel was canceled. Now the VAT rate on diesel fuel, gasoline and autogas has returned to the pre-war rate of 20%.

As for the return of the 5% tax for entrepreneurs, which Shmyhal announced, the Verkhovna Rada passed a bill in late June, stipulating that its provisions would come into force on August 1.

However, the document is currently in a state of blockage: MP Dmytro Razumkov has introduced a draft resolution to cancel the adoption of the bill as a whole. If such a draft resolution is adopted, the Speaker of the Verkhovna Rada will not be able to sign the bill.

The situation with the draft law creates uncertainty for entrepreneurs who expect a refund of the 5% tax rate. It is important for the Verkhovna Rada to quickly consider this issue and make the necessary decisions so that entrepreneurs can plan their activities taking into account changes in the tax system.