Economy

Mykhailo Pozhivanov: The task for local authorities today is to review the tax on land and real estate

mikhaila-pozhivanov

Local councils need to scrutinize and review their taxes to keep businesses going

After a series of missile strikes on Ukraine's power system by Russia, the government asked Ukrainians to minimize electricity consumption during peak hours, which affected the operation of enterprises and businesses, reducing already low incomes during the war. How can entrepreneurs be helped not only by central but also by local authorities, - told ElitExpert politician, doctor of technical sciences, professor Mykhailo Pozhivanov, who manages the organization of the "Batkivshchyna" VO party in the city of Odesa.

We all understood the government's request to reduce electricity consumption in the morning and evening hours and not to use powerful electrical appliances. And this applies not only to apartments and houses, but also to business centers and industrial premises. This situation disrupts the work schedule of all enterprises and factories, which leads to a drop in the number of products produced and the number of customers in the service sector, and as a result, to a decrease in profits. Planned and unplanned power outages are already occurring in entire districts of many cities of Ukraine.

In this situation, when there is a war, we always try to understand the requests of the government, but for some reason, neither the deputies of local councils, nor the heads of cities and communities, whose full competence is real estate taxes and land taxes, do not think about helping the local business and its survival.

After all, when an entrepreneur does not receive income from his activities during the war, but he has premises or land and needs to pay rent and tax for them, the local authorities do not even think of going to meet him. And what will this lead to - people will be forced to simply close their businesses, lay off employees and eventually lose everyone.

Today, this issue concerns almost all regions of the country, which to one degree or another are subject to missile strikes or drone attacks. In my opinion, local authorities should review their property and land taxes as they are fully within the remit of local councils.

For example, state income tax is not paid if the company does not work or has no profit, which is absolutely normal in our situation. But with regard to real estate and land tax, they do not depend on the income of the business, and they must be paid in any case to both individuals and legal entities.

Therefore, this is a question for all local councils: communities, districts and cities - you need to carefully study and review local taxes, because they are set by these councils.

In this situation, local deputies should not close their eyes and think that everything will resolve itself and the state will compensate them for everything. Today, so much money from the central budget goes to subsidies, much more than is collected in taxes. Therefore, it is absolutely wrong to kill a business in its territory, it must be supported so that local entrepreneurs can work in full, pay wages to employees and see a future perspective.

If the deputies and mayors of communities and cities do not review local taxation today, entrepreneurs in their territories will close and there will simply be no one to pay taxes to the local budget. Employees of these enterprises will remain without work and income, which will increase the burden on employment centers. It is always easier to destroy than to create.

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