The Rich Pay Less Than the Poor: Ukrainians Shown the Wild Injustice of the Tax System.

The Rich Pay Less: Injustice of the Tax System
The Rich Pay Less: Injustice of the Tax System

Expert Oleg Popenko revealed the mechanisms that allow high-paid officials and heads of state enterprises to avoid paying taxes.

According to Popenko, a person earning a million hryvnias in salary pays the same contributions as an employee with an income of 100 thousand hryvnias. This is a distortion in the tax legislation that has existed for many years.

The state creates conditions for the rich at the expense of the poor. This is especially evident in state companies, where managers of supervisory boards and administrations receive high salaries - some 200, some 300, and some even a million hryvnias.

The expert explained that in developed countries, a person pays more taxes when they earn more income. Ukraine, on the contrary, operates in the opposite way.

Comprehensive Audit of the Tax System

The expert believes that a comprehensive audit of the tax system is needed to rectify the situation. First of all, it is necessary to review the legislation regarding the single social contribution payments for the wealthiest employees.

At the same Time, Popenko noted the problem of non-transparency of payments in state companies, particularly in Naftogaz. Among the high salaries paid there, the social contribution is paid at the minimum amount.

According to the expert's calculations, if the managers paid social contributions proportionally to their incomes, it would significantly increase the revenues of the Pension Fund and allow for increased payments to the most vulnerable citizens.

Popenko called for bringing the tax system in line with European norms, where the amount of contributions depends on the level of income. This would enhance the fairness and efficiency of the system.

Popenko also explained how Ukrainians are being shortchanged on light and heating.


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