The government officials are poised to update indirect taxation polices to keep a closer eye on unaccounted-for income of Ukrainians, says parliamentary finance and tax committee chair Danylo Getmatsev.
In an interview for 1+1 TV channel, he criticized the ‘social contract’ that allowed Ukrainians to ‘hide their income from the state while the state itself blinked at corruption’.
‘Ukrainian people have avoided paying taxes en masse.. for 28-30 years we have been practicing this in different forms –cash-in-hand payments, offshore [schemes] of big and medium-sized business, shadow economy [schemes] for small business.’ claimed ‘Servant of the People’ MP.
According to the proposed policy, people will have to pay additional taxes if their spending turns out to be bigger than their declared income.
Getmansev said that the law On Finacial Monitoring introduced a tax amnesty cap of 400 thousand hryvnas meaning all the detected valuables above that threshold will be taxed separately.
As lawmakers are still discussing the policy , the ‘valuables’ category will need to be fine-tuned, though ‘vehicles, apartments, any expensive things ’ will be ‘definitely’ part of that list.