Economy

Eduard Karazhiya: The law on tax amnesty is unfair

The Cabinet of Ministers of Ukraine decided on the date of the introduction of a complete lockdown in Ukraine

Eduard Karazhiya, a lecturer at the Department of Economics and Management of the National Economy of the Odessa National University of Economics, expressed a critical attitude to the new Law on Tax Amnesty.

"I consider this law unfair. Because someone can buy government bonds, he will pay 2,5% for it, and the government will pay him 9% in an hour. Moreover, no one will ask where he got the money from, and the person becomes white and fluffy.

The second point is different conditions. Let's accept money abroad, in foreign currency - 9%, in Ukraine - 5%. But the fact is that law-abiding people who have been paying taxes all these years, state employees or normal decent businessmen, pay other amounts: 18,5% of income tax, 22% - a single social contribution, 1,5% of the military levy, and who- then another 18% profit tax or 5% of turnover. In fact, they give up to 60% of their earnings to the state. And someone will be able to completely rehabilitate themselves for 5%. As a result, honest and decent people will remain fools.

In addition, if this reform were fair, then the president would have to say: "To everyone who paid taxes honestly, we will compensate 35-45% that they paid during their lifetime." That would be fair," the economist emphasized.

Let us remind you that the Verkhovna Rada at its meeting on June 15 adopted the so-called "Law on tax amnesty", which was initiated by the President of Ukraine Volodymyr Zelensky.

The document proposes to apply a one-time voluntary declaration of assets that were acquired at the expense of taxable income, but from which taxes and fees were not paid and/or which were not declared during any of the tax periods until January 1, 2021.

Previously undeclared income is taxed at rates of 2,5, 5, and 9%, depending on the type of asset and the chosen method of fulfilling tax obligations.

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