Page 55 - UKRRptFeb24

Historical experience shows that the main financial resource of countries in a state of war was not taxes but loans, grants, and monetary aid. Taxes accounted for only 30% of the US government's financial resources during the Second World War, and 20% during the First World War. “In Ukraine, tax payments constituted 45% of all government resources in 2022-2023," Danylyshyn added.
6.1.2 Budget dynamics - specific issues...
Last year, Ukraine spent more than 60% of the funds in its budget on defence. Expenditures from the general fund of the state budget on the security and defence sector in 2023 amounted to ₴1.84T, or 60.8% of total spending. In December, ₴284.3B in budget funds were spent on defence. The government finances security and defence sector expenditures exclusively through tax revenues and military bonds.
Zelenskyy proposes non-standard solutions to fill the state budget.
President Volodymyr Zelenskyy believes that Ukrainian men who have gone abroad should pay taxes in Ukraine. According to him, some citizens left Ukraine and did not return to their former places of employment. However, they still must pay taxes to the Ukrainian budget because these funds help finance the army. Also, Zelenskyy would like European social assistance for refugees to be diverted to the Ukrainian budget. "There are such situations where a person leaves Ukraine and receives help from Germany and Ukraine as well. It would be much better for us if Germany supported Ukrainians by providing money to the Ukrainian budget. And then Ukraine could redistribute this money depending on where this person is located," he said in an interview with a German TV channel. The German government is still discussing the issue of providing assistance to men of draft age who have left Ukraine
Tax revenues from the gambling industry are 1,300% higher than in 2022.
The state budget received ₴10.4B in taxes from the gambling business in 2023. This is 1,300% more than in 2022 (₴730.9M) and 51 times more than in the last pre-war year, 2021 (₴204.8M).
Finance Ministry to pause tax code reform until taxpayer trust increases, says minister The Finance Ministry will not implement changes to the tax code as proposed in the National Revenue Strategy without gaining taxpayer trust, Finance Minister Serhiy Marchenko said during a discussion panel hosted by the Center for Economic Strategy on January 3.
Budget 2024 provides UAH 5.8bn to pay compensation for destroyed housing – Kubrakov The 2024 budget provides for UAH 5.8bn for the payment of compensation for destroyed housing, Deputy Prime Minister for the Reconstruction of Ukraine, Minister of Development of Communities, Territories and Infrastructure Oleksandr Kubrakov said.
The Ministry of Finance is inclined to reform Ukraine’s simplified taxation system following the Polish model. According to the Deputy Minister of Finance, Svitlana Vorobei, “We took the Polish taxation system of small and medium-sized businesses as a basis. Poland has a differentiated system, with rates ranging from 2% to 20%. The tax rates change from time to time, depending on the economy. The highest rates are for activities in which the least expensive part is, for example, the provision of services." The Ministry of
55 UKRAINE Country Report February 2024 www.intellinews.com