The business community, united by the American Chamber of Commerce in Ukraine, expresses deep concern regarding changes of taxes and fees rates as well as taxation rules foreseen by Draft Laws #4000 "On the State Budget of Ukraine for 2021" and #4101 "On Amendments to the Tax Code of Ukraine and Other Laws of Ukraine to Ensure Balance of the Budget Revenues."
The predictability and prudence of the tax legislation changes are the priorities for the business community. The proposed changes violate the principle of tax legislation stability, as they are introduced later than six months before the start of the new budget period, in which the new rules and rates will apply, as provided by the Tax Code of Ukraine. Moreover, some of the proposed provisions of the Draft Laws do not consider the specifics of the development of certain sectors of the economy and eliminate the incentive function of tax rates. Today there is no clear justification for increasing tax and fees rates, as required by the current legislation.
Today business is operating in the global economic crisis caused by the COVID-19 pandemic, which has significantly affected Ukraine's economy and caused a significant decline in economic and investment activity in the country. Currently, Ukraine's leadership needs to understand how to recover the economy as soon as possible and promote its growth. Adoption of the proposed changes, according to AmCham member companies, will only worsen the situation and will not increase budget revenues.
Given that the implementation of the proposed changes may cause significant damage to the investment climate and economy of Ukraine, experts of the AmCham member companies call to ensure the transparent, high-quality, and constructive process of the legislative initiatives adjustment with detailed study and involvement of the business community.