Zelensky advocates exit capital tax / Photo from UNIAN
The introduction of the tax has been discussed in Ukraine for several years.
Ukrainian President Volodymyr Zelensky has called for the introduction of exit capital tax.
"Do not touch any reform if you're not ready to implement it. It seems to me if we introduce exit capital tax, then let's introduce it. If it improves people's lives, it's necessary to be introduced," Zelensky's press service quoted him as saying at a Tuesday meeting of the National Reforms Council, during which a draft law on exit capital tax was presented.
After a detailed discussion of the bill, the participants in the meeting agreed to continue work on the document to finalize it.
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As UNIAN reported earlier, the introduction of exit capital tax has been discussed in Ukraine for several years. The main idea is that earned profit is taxed only when it is paid to owners in the form of dividends and equivalent payments.
Experts have different opinions on the introduction of the tax.
The parliament has already registered bills on exit capital tax, which has advantages for both businesses and the state, but also suggests risks, such as a steep decline in budget receipts in the first years of its implementation.
According to preliminary expert estimates, the introduction of this model from 2021 may lead to direct, short-term budget losses worth about UAH 53 billion (US$1.9 billion).