Ukraine’s simplified tax system no longer serves the purpose it was created for and requires urgent reform. This was stated by Anna Khudar, head of EKVITAS-CONSULT LLC, commenting on the current state of the country’s tax policy.
According to her, the simplified taxation system once acted as a lifeline for small businesses. It allowed entrepreneurs to start their own ventures, survive difficult times, and create jobs. However, nowadays, the system is often misused. Large companies with significant revenues take advantage of it to minimize tax obligations, depriving the state of vital resources and putting small businesses at a disadvantage.
Khudar pointed to Poland’s model, where a more transparent and balanced tax system is in place. There, businesses are not afraid to grow because expansion does not trigger additional restrictions or risks from the government. Their tax framework is based on fairness and proportionality, encouraging development.
She believes Ukraine should move toward a model based on trust, clarity, and support. According to her, the tax environment should motivate, not hinder. The system should not punish success, but rather create conditions for growth and scalability. Those who create value should feel supported, not resisted.
Anna Khudar concluded that the simplified tax should not remain a survival tool. It must become a launching platform for business growth and economic development. Only then will the tax system truly serve the people, not work against them.
