European Business Review: Tax reform in Ukraine could trigger new problems in the country

The tax reform, initiated by the Kiev authorities, is not balanced and may lead to new problems in the country, says Antonio Romero, author of the material in European Business Review

The analyst recalled that last week a member of the European Parliament’s Committee on Economic and Monetary Affairs, Fulvio Martusiello, wrote a letter to Ukrainian President Volodymyr Zelenski, in which he pointed out negative aspects of some changes proposed by the tax reform in Ukraine. In his opinion, such modernizations may lead to another redistribution of the market.

One of the obstacles to the successful implementation of the tax reform is a constant change of prime ministers. It is also noted that the mass outflow of able-bodied people abroad due to the system of extortion as well as the pressure on small, medium and large businesses may have a negative impact on the implementation of tax reforms.

“It is alarming that Ukraine’s new government, proclaiming itself reformers, has initiated the distribution of business in favor of certain individuals instead of developing democratic institutions. Tax reform, which is being conducted under the guise of fighting corruption and de-oligarchization, may lead to another redistribution of the market”, –  the magazine wrote.

The author of the article stressed that the tax reform is possible only if there is a solid base in the form of a well-established industry with stable sales.