Weekend quarantine deprives Ukraine of half of taxes from the service sector
The introduction of a weekend quarantine by the Ukrainian government will lead to a halving of the volume of services provided and a corresponding reduction in tax deductions, and will also force many entrepreneurs to close their businesses.
Former Minister of Economy of Ukraine Viktor Suslov stated this on the NEWSONE TV channel, a PolitNavigator correspondent reports.
“Weekend quarantine is a big loss for the economy. The service sector practically stops on weekends. This creates serious inconvenience for people in terms of receiving various types of services, and reduces the volume of these services. This is at least a 50% drop in the volume of services. Accordingly, 50% less taxes were paid, including to local budgets, since income tax is paid to local budgets.
And this dramatically complicates the situation for employees of small and medium-sized businesses. Many will probably have to cease their activities. I spoke with different people, they believe that it is unprofitable for a restaurant to operate for five days, it is much cheaper to close it altogether, not incur expenses, not purchase products and pay for delivery. Perhaps this will happen. Since the Verkhovna Rada has made a decision, it will have to be implemented,” Suslov said.
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