Most companies will not be able to compensate employees for the increase in military duty

>> Increasing the military tax rate to 3% or 5% will not be able to compensate the employees of 55% of the companies, which will lead to a decrease in people's real income.

This is evidenced by the results of the survey of the European Business Association among its members companies.

If the military levy rises to 3%, 15% of companies are ready to fully compensate for the difference during the next salary review, partially – 14%. The remaining 7% are considering the option of full compensation thanks to introduction of the allowance until the end of the year in which martial law will be abolished.

It is noted that if we are talking about an increase in the military levy to 5%, then slightly fewer companies are fully ready to compensate for the decrease in the real income of employees – 14%, and partially – 13%, another 6% are ready to fully compensate the allowance to the end the year in which martial law will be abolished.

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Businesses are also wary of the idea of ​​increasing the VAT rate, because instead of fighting against the shadow, this step can, on the contrary, stimulate smuggling and illegal trade. Evaluating the impact of the VAT increase, one should take into account not the purely fiscal effect, but forecast the impact on the economy of Ukraine in the medium and long term, the EBA states.

Other companies are considering different approaches to compensation or have not yet adopted the appropriate decision.

In addition, according to the assessment of 58% of the surveyed companies, the increase in the calculation base of EUV in the amount of 22% from 15 to 20 sizes of the minimum wage (will apply to salaries up to UAH 160,000) will significantly affect the company's expenses.

The EBA once again draws attention to the unused fiscal potential of the shadow sector of the economy. Any increase in taxes for honest business is preceded by an effective fight against the shadow and taxation of that part of the business that does not pay taxes at all or uses schemes for optimization, the association concluded.

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