National Bank does not rule out further tax increases in Ukraine
The National Bank of Ukraine does not rule out the introduction of new tax initiatives in case of additional budget needs.
According to Censor.NET with reference to the EP, this is stated in the report of the National Bank of Ukraine for October 2024.
Thus, the macroeconomic forecast assumptions are based on draft legislative changes to increase the rates of certain taxes (including military duty, income tax on banks and non-bank financial institutions, and others) and previously adopted changes to revise excise tax rates.
According to the report, if additional budget needs arise, they can be covered by raising the rates of existing taxes or introducing new ones.
According to the NBU, such initiatives may have different effects on inflation, depending on their parameters.
It is noted that the potential increase in consumption taxes (in particular, VAT) contains more short-term inflationary risks, as their increase will be immediately reflected in consumer prices.
The NBU also noted that direct taxes have a largely neutral effect, as the pro-inflationary influence of higher budget expenditures offsets the restriction of private consumption.
