Many will move to “shadow” wages.
The European business Association (EBA) spoke out against the President’s bill No. 3963, which proposes to increase the minimum wage in Ukraine 4723 UAH to 5000 UAH 1 September. According to the organization, the implementation of this initiative will provide additional tax pressure on entrepreneurs.
“The Association insists on unacceptability of the bill 3963, unless you lowered the maximum base for the calculation of ERUs to prevent the growth of the burden on honest taxpayers,” — said in the message.
The organization’s representatives claim that with the increase in the minimum wage will also increase and the fiscal pressure on wages, which would entail the growth of the “shadow” salaries.
“There is no doubt that honest taxpayers will feel increased pressure from government agencies, which they will implement in an attempt to compensate for the inevitable tax loss arising due to the growth of the informal sector”, — added in the EBA.
In addition, the organization noted that the government ignored the calls of business to discuss the initiative. The bill was introduced in Parliament without any consultation with entrepreneurs.