Other

The Russian Federation imposes a war for exhaustion to Ukraine. Will it indeed increase taxes to Ukraine

"No matter how much taxes we pay - more than 10%, 20%, 50% - they are still not enough for the needs of this war. Neither this year nor the next or 5 years. Our economy is too small and the challenges are too big ". Even if we collect 100% of our GDP into the budget, giving everything earned to the treasury, we will not be able to cover the needs of our defense on our own. In 2023, budget expenditures amounted to 4. 9 trillion UAH, which is about 75% of GDP (6. 5 trillion UAH).

Half of these funds went to defense: the salaries of military, clothing, food and some purchase of weapons. Heavy equipment, shells, air defense systems and more came from our partners, and according to the King Institute of the World Economy, last year it amounted to € 46. 6 billion. In total, it is about 103% of Ukrainian GDP in 2023, and this is not yet given The amount of humanitarian aid we also receive.

How much taxes we do not pay - more than 10%, 20%, 50% - they will still not be enough for the needs of this war. Neither this year, nor the next or 5 years. Our economy is too small and the challenges are too big. The price of the issue for the free world - only 0. 15% of their total GDP. Think! For democratic countries that support us with finances and weapons, $ 42. 5 billion financial assistance (mostly on credit) and € 46. 6 billion military supplies are only 0. 15% of their GDP.

To understand the scale: at a salary of 100 thousand UAH it is as a donat 150 UAH. It's very little! What is the problem? Why are we forced to take more expenses and are constantly reminiscent of the difficulty of allocating such large funds for our needs? Among the key reasons: our partners see inefficiency in costs and taxes. They are democratic countries, so our inefficiency becomes the subject of their domestic political disputes.

The leader who allocates money to the country with such problems is automatically criticized and loses rating. And yet, pay attention, our partners, albeit with difficulty, continue to support us. What I mean when I talk about the inefficiency of costs, of course. But for taxes, it is not in their size, but in the method of collection. We have two parts of the economy.

One honestly pays taxes (according to business ombudsman, 99% do it voluntarily), and the other-in fact "invisible" for the authorized bodies and lives outlawed. Our partners, when talking about tax collection problems, mean this shadow part of the economy. They see in it the main resource for filling the budget and a way to reduce internal pressure from political opponents. This is where the "difficulty of translation" arises.

The Ministry of Finance comes with communications that the IMF requires taxes, and the IMF honestly clips his eyes, because the policy of "corporation" does not allow you to oppose. What is in a dry residue? The Russian Federation imposes us a war for exhaustion and aggressively warms our attention to our internal problems, in particular in the Western media.

Strategically, they set themselves the task of depleting us internally and, at the same time, to reduce the influx of resources from the outside, so that it becomes quite weak and break our balances. In this framework we need to ask ourselves what we will achieve taxes? We will collect enough resources? No, see. above about 103% of GDP.

Will we demonstrate our effectiveness and reduce criticism in our address? No, because after the words about raising taxes, there will be a detailed description that in the plane of the efficiency of expenditures and working smuggling schemes, everything remains as it was. We will show our partners what we try? What is a penny for them, we will collect with the insulation. And they do not require this from us.

They want us to finally be able to "see" the part of the economy that pays nothing at all. They did not exhaust the part that already entails the expenditures for defense. We have a long distance. In such circumstances, you need to protect the engine of our economy, which still creates value added. Better yet, to increase the power of this engine. Instead, we accept the imposed game and do what the Russian Federation seems to be depleting our own resources.

The affiliated experts and opinions with the Ministry of Finance say that the circumstances have occurred and now there are no options. "Circumstances" occurred "in February 2022, more than two years ago. Further, it was a new reality and a sequence of decisions that had to take into account this reality. I cited the numbers that clearly show: Increasing taxes is not the main way to solve our problems. The need to raise taxes has led decisions that have names.

And if taxes are inevitable for taxpayers, then these names should be inevitable personnel decisions. Because somehow it turns out that they have been stuck, and we will pay. This is not Martian in such a difficult time to go by tax and customs administration in the mode "as always" at the calculation of "Propiet". This is not the FSB written letters to our Western partners asking for an automatic exchange of customs information.

These are not some minions came up with a national income strategy, which, in fact, says that we all have so much officer that we need to move and further at least by 2030. These actions or inactivity have names, surnames and positions. And these names, names and positions must be given a proper assessment. Incompetence must receive its "reward". Otherwise, we will not limit one increase in taxes. The author expresses a personal opinion that may not coincide with the editorial position.