Business on the tax regime in wartime: fiscal pressure, burdensome tax administration, untimely tax changes

According to the results of 2022, business has worsened the assessment of the tax regime in Ukraine (EBA survey). The rating fell to 2.97 points out of 5 possible.

Tax administration and preparation of tax reporting received the lowest score among the index components. Only 20% of respondents consider these procedures easy. Most respondents complain about the amount of time they spend on preparing tax returns and paying taxes.

Also this year, respondents reported an increase in fiscal pressure compared to last year. Only 4% did not feel pressure in relation to their company during the year (in 2021, there were 36%). Among the manifestations of fiscal pressure, the business singled out, in particular, unreasonable requests for information and the blocking of tax invoices. Regarding changes in tax regulation, 49% consider them untimely, insufficient and ineffective, 33% – satisfactory, and only 18% – timely, complete and effective.

As we can see, in 2023, the government faces a number of tasks to support business, and first of all, it is to stop hindering its development. Liberalization of tax administration, simplification of procedures and cessation of fiscal pressure on business are critically important for the recovery of the Ukrainian economy.