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Automatically translated version. May contain inaccuracies compared to the original.
🔈 Prime Minister Serhiy Koretskyi explained that raising VAT by 1% in the draft state budget is necessary to insure businesses against wartime risks.
“The destruction that is taking place, and the attacks — it’s an attack on businesses, an attack on people, an attack on taxes, on the state budget, on the resilience of our country,” Koretskyi said.
According to the prime minister, one form of support for businesses is lending programs with preferential rates — the state compensates the difference between the preferential and the base market rates. Such support is financed both from state funds and from grants by international partners.
Koretskyi separately mentioned insurance for wartime risks.
“A very important initiative. This was our initiative so that businesses are quickly compensated for the losses caused by rockets and drones,” the prime minister explained.
He explained how it could work — the state needs to contribute to the relevant program, and we’re talking about an amount of a billion dollars or a little more.
“We put this into a separate line of the state budget, let’s say, this special fund, this special account, this billion. The state budget included a somewhat unpopular measure in places — including a small increase in the tax — VAT. Unfortunately, there are no other sources,” he said.
Koretskyi noted that currently the proposal is to raise VAT by 1% — such a proposal is contained in the draft law on the state budget for 2027.
“We will continue talking with parliamentarians; we constantly talk with businesses… Because we can’t go to partners and simply close every issue with these needs. I believe it’s partnership when the state makes its contribution and shows that despite everything we are fighting for our sovereignty, and then we ask partners to multiply our contribution by four and give us an additional four billion to form a total fund of 5 billion dollars that will go to rapid compensation of insurance claims,” the prime minister said, adding that Ukraine’s international partners support this idea.
15 in September the Verkhovna Rada received the draft law on the state budget for 2027 for consideration. The document has already been sent to the Budget Committee for review.
In its September review, the EBRD revised down its economic forecast for Ukrainian GDP growth. Under the bank’s new forecast, Ukraine’s GDP will grow by 1,5% by the end of 2026, and 2,5% in 2027. The reductions compared with the June forecast are -0,7% and -1,5% respectively.
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