On November, 3, 2021 the German Economic Team (GET) and the Centre for Economic Strategy (CES) in Kyiv jointly organised a hybrid expert round on how to restrict abuse of the simplified tax system in Ukraine.
After an introduction by Maria Repko, Deputy Director of CES, and David Saha, Consultant of GET, the joint Policy Paper was presented by Yurii Gaidai, Senior Economist of CES.
In the joint Policy Paper the authors assess anomalies of revenue distribution within groups of simplified taxation in Ukraine. Their analysis indicates widespread threshold abuse in Group 2.
Therefore, they propose the following recommendations:
1. Refocus groups 1 and 2 on the smallest of businesses by restricting substantially the list of eligible activities and adding further criteria
2. Implement full fiscalisation for Group 3
3. Introduce compulsory VAT for retail business in Group 3
These policy implications were lively discussed across all invited experts in Kyiv and online.
Please find the video of the event here
Please find the Policy Paper here