How business tax increases and economic reservations from mobilization will affect Ukraine’s budget.

Ukraine needs to find new sources of income for the state budget because raising taxes for businesses will lead to a decline in the country’s defense capabilities, according to Deputy Chairman of the Parliamentary Committee on Finance Yaroslav Zheleznyak.

“We finance our military through taxes and customs duties. If we have fewer taxes and duties, it means less money for the army. That is why it is important to support business. After all, if the situation in the business environment worsens, it will mean not only economic deterioration but also in safety,” Zheleznyak emphasized.

Therefore, it is necessary to find new revenue streams, particularly by improving the administration and collection of existing taxes.

Meanwhile, the head of the Committee for Economic Development, Dmytro Natalukha, said that companies paying for economic reservation of their employees from mobilization will bring ₴200B ($5.1B) in revenue.

It is noteworthy that the business community supports the the policy of providing economic reservation for workers with salaries of ₴30,000 or more, because it will allow salaries to be brought out of the shadows and increase tax revenue.