The AmCham condemns the government’s initiatives to increase corporate income taxes.

The American Chamber of Commerce in Ukraine (AmCham) called on Ukrainian authorities to strengthen their fight against Ukraine’s shadow economy before increasing the tax burden on honest taxpayers. AmCham’s biggest concern in the proposed tax changes is the 1% tax to be applied to corporate revenues.

“Such a tax should not be introduced, as it is a completely new sales tax alongside the existing VAT regime,” the AmCham said.

At the same time, the chamber understands the urgent need to extend the military levy to all business categories. However, the organization believes that a sharp one-time increase in the military levy of up to 5% could lead to a decrease in real wages and an increase in the attractiveness of informal employment.

It will be recalled that on July 18, the Cabinet of Ministers approved two draft laws to finance additional military expenditures. The government estimates additional critical needs at ₴500.3B ($12B). The government expects the increase in the military levy and other measures to mobilize ₴121.8B for defense.