The NBU is considering additional taxation of non-critical imports.
In response to the risk of reduced international support, through which a high foreign trade deficit is being financed during wartime conditions, it is worth considering the possibility of limiting non-critical imports primarily through fiscal levers, believes Deputy Chairman of the NBU Serhii Nikolaychuk.
According to him, such a step can be considered as one of the measures to adjust external trade balances and strengthen the state’s influence in the fiscal sphere.
At the same time, he explained that a high trade deficit in martial law is a typical situation due to the destruction of production facilities, logistical difficulties, and, accordingly, the shortfalls in domestic production must be compensated for by imports, as well as the need for purchases for defense and reconstruction.
However, as Nikolaychuk clarified, such a deficit does not threaten the country’s economy if it is possible to finance it with international financial aid. Still, in the event of its absence, the ability to provide the economy with imported products at the expense of international reserves will be limited.