Economic reservation from mobilization will bring the budget 200 billion UAH a year

This was stated by Dmytro Natalukha, chair of the parliamentary committee on economic development, at the congress “Public finance system reform – the path to Ukraine's recovery,” organized with the support of CIPE.

“At present the committee’s activity is focused on meeting the budget’s financing needs through various instruments. The first is direct fiscal provision for defense spending. And here we rely not on a mass increase in taxes, but on creating new mechanisms, on searching for new instruments and new ways. And among other things, we are not ruling out the issue of economic reservation, which, according to our calculations, can bring in from 200 billion UAH a year,” said Dmytro Natalukha FinClub.

According to Andrii Dlihach, head of Advanter Group, who presented the results of a survey of business representatives, two thirds of respondents supported economic reservation of employees with salaries from 30,000 UAH. “Most believe that economic reservation is a rational, correct step that will make it possible to bring salaries out of the shadows and increase budget revenues,” he said.

The remaining 35% called it unacceptable, because it would mean that “war is for the poor.”

“Our modeling showed that the threshold for further mobilization of men from business is 15%. If more than 15% of the men who are currently subject to conscription are additionally mobilized, a catastrophic drop in business turnover begins,” said Andrii Dlihach.

The mobilization of 25% of employees could lead to the loss of more than half of the turnover of Ukrainian business.

“It is proposed to set a salary threshold of 30,000 UAH, which makes it possible to reserve 570,000 employees who are critical for business and, on the other hand, to increase revenues to the state budget by 165 billion UAH,” estimates Andrii Dlihach.