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Zelensky not to impose distributed profit tax in Ukraine

[img]https://img.112.international/original/2019/06/24/283563.jpg">
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Ukraine’s President has dispelled the illusion concerning distributed profit tax. And this is good.
Nobody likes to pay taxes. Therefore, there is a natural desire to remove the income tax and impose a distributed profit tax. That is, in fact, simply abolish the income tax. But this is an expensive pleasure, which Ukraine simply cannot afford. IMF says it. And the Ukrainian authorities know about this. And for the first time, they have publicly said we should put away our high hopes for unrealizable things.
Former president Poroshenko promised to impose distributed profit tax. Poroshenko knew that the IMF is against it. Poroshenko knew that we needed cooperation with the IMF. But he promised it, knowing that this promise cannot be fulfilled.

Zelensky promised to implement a tax on the withdrawn capital. Zelensky learned that the IMF is against it. Zelensky found out that we needed the IMF. And Zelensky publicly said that this promise cannot be fulfilled.
There is one difference between these two cases. Zelensky did not give false hope, promising some things that he was definitely not going to fulfill.
He cannot afford such a solution. Ukraine cannot afford. And the desire of lobbyists of distributed profit tax to get it at any cost, even at the cost of losing macroeconomic stability, looks extremely irresponsible.
Tax on capital is akin to tariffs. Any politician in opposition can promise to lower tariffs. But having come to power, he will never do that. Because the issue price is too high. And right-wing populism (like, let's cancel taxes) is not much different from left-wing populism (let’s do everything in a cheap way”).
 
The president has already refused two promises that were attributed to him. And this is good. Because both promises looked like destructive populism.
And yes, this problem has one simple solution. Why is the IMF against it[/img]
Related: Law on luxury tax to equalize situation in the country, - MP Rabinovich
Can we understand such a desire? No one in the world ever likes to pay taxes. But this does not mean that we have to avoid paying them.
Does Ukraine have any problems with its taxes? Of course. And the main problem with the complexity of administration and the tax itself. This problem must be solved. Reducing primarily the rent of corruption.
And then, in the future, when we have a budget surplus and rapid economic growth, we can talk about tax cuts. And for this to happen, we just have to take and execute the IMF program.
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