The Government rejected the idea of a 10% tax on currency exchange transactions for imports

02/ 09/ 2022

The draft law on the introduction of a 10% tax on the purchase of currency for import transactions will not be considered by the Verkhovna Rada. The European Business Association welcomes this decision and it is grateful that the voice of transparent business was heard, the concept was carefully analyzed and, the new taxation was not given the green light considering the potential risks. We will remind that in August the EBA community urged Prime Minister of Ukraine Denys Shmyhal, Deputy Prime Minister of Ukraine - the Minister of Economy of Ukraine Yulia Svyridenko, Minister of Finance of Ukraine Serhii Marchenko, Governor of the National Bank of Ukraine Kyrylo Shevchenko, Chairman of the VRU Committee on of Finance, Tax and Customs Policy of Ukraine Danylo Hetmantsev, to fully assess the risks of the introduction of this tax both for the state and, in particular, for business. After all, the lions share of companies in the current difficult situation may simply not be able to withstand such a burden which can result in the reduction or even the closure of companies. Moreover, if additional taxation of currency transactions were introduced, these would inevitably fall on the shoulders of the final consumer, and this means a significant increase in the price of domestic and imported goods along with the existing inflation and the growing exchange rate. At the same time, we very much hope for further dialogue on other, no less relevant issues for business, namely, the 10-10-10 tax concept, the deferral of key employees from mobilization, and the possibility for business representatives to go abroad on short-term business trips.

The draft law on the introduction of a 10% tax on the purchase of currency for import transactions will not be considered by the Verkhovna Rada.

The European Business Association welcomes this decision and it is grateful that the voice of transparent business was heard, the concept was carefully analyzed and, the new taxation was not given the green light considering the potential risks.

We will remind that in August the EBA community urged Prime Minister of Ukraine Denys Shmyhal, Deputy Prime Minister of Ukraine – the Minister of Economy of Ukraine Yulia Svyridenko, Minister of Finance of Ukraine Serhii Marchenko, Governor of the National Bank of Ukraine Kyrylo Shevchenko, Chairman of the VRU Committee on of Finance, Tax and Customs Policy of Ukraine Danylo Hetmantsev, to fully assess the risks of the introduction of this tax both for the state and, in particular, for business. After all, the lion’s share of companies in the current difficult situation may simply not be able to withstand such a burden which can result in the reduction or even the closure of companies.

Moreover, if additional taxation of currency transactions were introduced, these would inevitably fall on the shoulders of the final consumer, and this means a significant increase in the price of domestic and imported goods along with the existing inflation and the growing exchange rate.

At the same time, we very much hope for further dialogue on other, no less relevant issues for business, namely, the 10-10-10 tax concept, the deferral of key employees from mobilization, and the possibility for business representatives to go abroad on short-term business trips.