More than 22,000 private entrepreneurs closed after the signing of the law on tax increase

More than 22,000 private entrepreneurs closed after the signing of the law on tax increase

After the president signed the law on tax increases, Ukraine recorded a mass closure of private entrepreneurs. Since the law came into effect, 22.5 thousand entrepreneurs have ceased their activities.

 This was reported by "Opendatabot".

Specifically, on the day the law was signed, November 28, 2,332 private entrepreneurs were closed. In the initial days following the law’s adoption, the number of closures exceeded 1,000 per day, significantly surpassing the usual daily average of 700 closed enterprises.

Overall, from the beginning of 2024, 254,288 private entrepreneurs have ceased their activities. The largest surge in closures was observed in March, when 28,690 private entrepreneurs closed. Analysts attribute this to entrepreneurs’ desire to avoid excessive tax obligations, simplify accounting, and the conclusion of reporting periods.

In the fall, the number of closed private entrepreneurs increased due to the adoption of the new tax law. Some entrepreneurs consider the new taxes to be unfair, while officials emphasize their relatively low rates compared to EU countries.

Experts note that changes in taxation have significantly impacted Ukraine’s business environment, and the situation requires further analysis to mitigate the negative impact.