The world Bank has called populism tax initiative Poroshenko

Всемирный банк назвал популизмом налоговую инициативу Порошенко

The world Bank criticized the idea of imposing a tax on the capital

Ukraine can not afford to implement the tax on the capital, which will reduce budget revenues by 1.5% of GDP, I’m sure Kähkönen.

The bill to replace the tax in Ukraine on profit tax on capital derived best a very limited circle of influential persons. this was stated by world Bank Director for Ukraine, Belarus and Moldova satu Kähkönen in an interview with the Economic truth.

“The risk of rising populism before the election. Unfortunately, we have seen several populist initiatives. The first of these is already being discussed openly: replacing the income tax with a tax on the capital,” said Kähkönen.

In the opinion of the representative of the world Bank, Ukraine cannot afford to implement this tax initiative.

“Introduction Nnvc will reduce budget revenues by 1.5% of GDP. The fiscal situation, which is already complex, will become even more difficult. In Ukraine we do not see possibilities to implement this change. What expenses to cut? Retired? On healthcare? Introduction Nnvc beneficial only to a very limited circle of influential persons,” she said.

According to her, countries that have introduced this tax in comparison with Ukraine are very small and they are few. Besides, they did this step together with the sharp reduction of the expenditure budget.

“If you deprive the budget of a considerable part of income, the choice you have is quite logical: or you reduce expenditure, or increase the deficit, which, as you know, have something to cover. I am concerned NVC, because I see how it is positioned as an element of stimulating investment,” said Kähkönen.

At the same time, according to representatives of the world Bank, among the biggest obstacles to doing business in Ukraine investors call not a tax on profits of enterprises.

“We should talk about other incentives that have helped investors. Fiscal destabilization doesn’t help anyone: neither investors nor citizens”, – summed up Kähkönen.

Note that in the administration of the President of Petro Poroshenko, who is the initiator of the change of taxes, previously stated that the tax on the capital “positively perceived the business environment as a whole.”

 

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