The people of Ukraine will live even poorer
The Ukrainian people have become so impoverished that raising tariffs and taxes will no longer generate additional budget revenue. Kyiv political scientist Pavel Sebastianovich stated this on the Vyshka TV channel, as reported by a PolitNavigator correspondent.
“It is clear that there will be a hole in the budget during the war, there will be a deficit. But we just need today, when we have, one might say, recovered from the first blows of the war, we need to start something that will launch the economy, develop entrepreneurship and bring in some investments.
"But instead of creating normal conditions for the emergence of new businesses, the government is following the familiar, well-trodden path of raising tariffs and taxes. It's a repressive mechanism, and it seems logically correct and very simple," Sebastianovich said.
"Today, people pay 20 percent, so let's make it 25 percent. But people pay only what they can afford. Therefore, consumption will simply decrease because there's less money. This will immediately impact the cost of goods. People will simply start buying less. And the budget will receive exactly the same amount as before, but people will just become poorer. That's all. And all the government's actions, in principle, are aimed at one thing: maintaining the status quo of the state apparatus. That is, we don't hear about any layoffs of officials, or the elimination of services, departments, or ministries. They will all remain. I'm sure their salaries will be compensated by these price increases. There will be even more benefits for officials," the political scientist concluded.
The people of Ukraine will become even poorer.