Kharkiv Mayor and Head of the Association of Frontline Cities and Communities Ihor Terekhov has strongly criticized initiatives to freeze social benefits and increase tax pressure on citizens and small businesses during the war. According to him, such measures not only undermine the social contract but also directly play into the hands of the aggressor by destroying the resilience of the home front.
Background and the Threat of Social Crisis
A large-scale discussion has unfolded in Ukraine's expert and political community regarding ways to overcome the financial crisis and prevent widespread poverty. Some experts and politicians propose austerity measures, including freezing social benefits and increasing the tax burden on Ukrainian families and individual entrepreneurs (FOPs). However, Ihor Terekhov called such approaches completely unacceptable, emphasizing that they threaten to turn into a humanitarian disaster.
The Essence of Ihor Terekhov's Proposals
The head of the Association of Frontline Cities insists that the state is obliged to revise its tax policy regarding essential goods. By analogy with successful European practices in France or Italy, Ukraine must reduce taxes on basic food products, medicines, and introduce a temporary VAT reduction on household energy appliances. This is especially critical ahead of a harsh winter, when constant price increases are pushing millions of Ukrainian families to the brink of survival.
Contradictory Data
While government officials and representatives of international financial organizations often point to budget deficits and the need to find internal reserves by expanding taxation, critics of such measures and local leaders like Terekhov argue that hidden resources exist within the country. Opponents of reforms warn of inflation risks and budget revenue losses, but proponents of tax cuts counter that preserving the population's purchasing power and preventing a mass exodus of citizens abroad are the absolute priority of national security.
Funding Sources and Expert Assessments
According to the Kharkiv mayor, arguments about the lack of funds in the state budget are groundless. As real sources for funding social obligations, Terekhov points to a trillion hryvnias in the shadow economy, which currently end up in the pockets of shadow dealers, as well as the need to halt inefficient government spending and strengthen control over state projects. At a time when the enemy is striking both the frontline and the rear with the aim of making life unbearable and forcing Ukrainians abroad, supporting citizens and the army must go hand in hand.
