Ukrainian Finance Minister Oleksandr Danylyuk doubts that the gradual introduction of exit capital tax is effective, he said in an interview with Interfax-Ukraine.
“With the introduction of exit capital tax, it is still necessary to regulate the interaction of those who work using one model with those who work using another model. These are additional complications and confusion in tax administration. In addition, the bill also provides for the possibility of retaining profit tax for banking sector for several years,” he said, answering a question about the assessment by the Finance Ministry of the idea previously announced by the Ukrainian president on the introduction of exit capital tax at the first stage only for small and medium-sized enterprises (SME).
He also said that this idea appeared in view of the fact that not all businesses support the replacement of profit tax with exit capital tax. At the same time, the phased introduction of exit capital tax would not significantly reduce budget losses, he said.
