Due to “shadow” land lease schemes, the country is losing billions. Therefore, the government should close the gaps in the legislation, and not increase the tax burden on business, said the general director of the Association “Ukrainian Club of Agrarian Business” Roman Slastyon.
Kyiv. Ukraine. Ukraine Gate – May 8, 2021 – Agriculture
“Indeed, the volume of the shadow market for the lease and shadow cultivation of agricultural land is very large. We estimate it at about 8 million hectares of land. This is the equivalent of about 24 billion in rent per year, “Slastyon said.
According to him, to change the situation, it is necessary to close the gaps in the legislation. And if you just increase tax rates, as the government plans, the situation will only get worse, and businesses will start to go into the shadows even more.
“There are certain gaps in the legislation that now allow this to happen. If the level of the tax burden is increased, it will not stimulate businesses to operate legally. On the contrary, we will see an increase in the amount of shady cultivation of agricultural land. And in fact the increase in the tax base, revenues will not happen. Because most of them will just start to go into the shadows later, ”he explained.
Earlier the People’s Deputy of Ukraine Alexey Goncharenko declared that the power for replenishment of the state budget should not increase taxes, and to find other sources, for example, to get rid of shadow schemes in the fuel market. In turn, investment analyst Eric Naiman stressed that raising taxes will slow down the economy and lead to higher prices for goods and services.
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Source: Ukrgate
