- Oleksandr Bereza, a Mykolaiv city councillor, warns that introducing VAT for small businesses will negatively impact the city’s economy, especially as it relies on small enterprises.
- He argues that the city budget will not benefit from the VAT, and the measure could reduce business activity and push businesses into the shadow economy.
- Mykolaiv’s economy is already struggling due to its proximity to the frontline, with large businesses leaving and the city facing a significant budget deficit.
- The VAT proposal is part of Ukraine’s commitments to the IMF for a new financial programme, affecting small businesses with annual incomes over 1 million hryvnias.
- Businesses below this income threshold will not be required to pay VAT unless they exceed it during the year.
Source: nikvesti.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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