Economy

The state machine is rather clumsy and does not keep up with changes - Mykhailo Pozhivanov

During the six months of the full-scale war, the material situation of Ukrainians significantly worsened.

During six months of full-scale war, the material situation of Ukrainians even in the so-called "rear" regions of the country changed significantly. The crazy exchange rate of the dollar, expensive utility bills, the decline or complete stoppage of many industries have negatively affected the standard of living in our country.

In turn, the less Ukrainians buy, the worse the situation of small and medium-sized businesses, primarily focused on working with the population. Therefore, according to statistics, the average Ukrainian is quite poor and spends his salary mainly on food. And there is rent, travel, and clothes...

What measures can be taken by the state to even out this situation at least a little in the current extremely difficult conditions, said the ex-deputy minister of the economy, professor Mykhailo Pozhivanov, who currently manages the city branch of VO "Batkivshchyna" in Odesa.

"Since the beginning of the war, the state machine has not had time to quickly react to the radically changed conditions, so many things are not done very correctly - both in personnel policy and in the economic and tax spheres. For example, today in the Lviv or Transcarpathian regions it is possible to not change anything and even increase taxes. But with regard to Zaporizhzhya, Dnipropetrovsk, Kharkiv, Mykolaiv, Odesa - how can you pay taxes on land and real estate here? This is absurd, because in this way the state "kills" the last owners," the expert said.

According to Mykhailo Pozhivanov, if the government wants to improve the economic situation in the country, then first of all it is necessary to reduce the pressure on working Ukrainians.

"If you want to save people, it is necessary to urgently reduce the tax of 19,5%, which is currently withheld from all working Ukrainians from the Wage Fund. 18% is the personal income tax and 1,5% is the military levy. The government should reduce this tax from 19,5% to at least 11,5% so that people with already small salaries feel something in their wallets. I am sure that a normal manager will not reduce people's salaries, and they will receive some allowance. After all, this extra money in today's situation will go only to pay for utility services or food products," he emphasized.

According to the expert, the policy of the National Bank of Ukraine in the conditions of martial law is also surprising.

"It is more rational to completely let the exchange rate float freely, make it market-based, and not artificially regulate it. After all, in this way, companies are placed in unequal conditions from the very beginning. It turns out that those who are allowed by the state to engage in so-called critical imports are allowed to buy a dollar at the official exchange rate of 36 hryvnias. And the rest of people and businesses have to buy it for 41 hryvnias. That is, some companies, in fact, get an extra 10% to their profit just out of thin air, while others suffer losses," concluded Mykhailo Pozhivanov.

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