Taxes and entrepreneurship: assessments and expectations
• According to the survey carried out by the Sociological Group Rating, 38% of the respondents indicated that they would like to run own business. 10% mentioned that they were already running own business. At the same time, half of the polled did not reveal an intention to engage in entrepreneurship. The highest demand in terms of starting own business was recorded among men, those youngest and with the highest income, as well as among those engaged in private sector.
• Among the latest governmental initiatives on business regulation, the adjustment of laws aimed at combatting schemes used by big business to withdraw money abroad and to avoid taxation gain the strongest support (74%). Two-thirds of the polled support the partial cashback to the customer in case the seller did not present a receipt for the item purchased; also, they support the introduction of the applications such as Privat24 or Monobank, which allow paying all the taxes using smartphone. More than half of the polled support the initiatives of widening the scope of cash registers use, introducing great penalties for businesses in case the goods are sold without a receipt, and optional issuing of electronic receipt instead of paper one. Nearly 40% support the liquidation of tax police and the establishment of the Financial Investigations Bureau, introduction of a one-time declaration (with 9-10% rate) of the property and funds with taxes not paid, and implementation of a specific tax for those entrepreneurs engaged in computer technology sphere. Meanwhile, it is important that those who already run or intend to start own business are more likely to oppose the initiatives of partial cashback to the customer, implementation of penalties for not releasing the receipt, or widening the scope of cash registers use.
• Half of the polled believe that wider use of cash registers is more likely aimed at restoration of order in the tax sphere. At the same time, 38% think such an initiative of the government is aimed at making barriers for small business. The latter statement receives a significant support among those who already run own business.
• 79% of the respondents believe the taxes promote the development of Ukraine. 74% are convinced that strengthening of the control over the payment of taxes will lead to the improvement of the economic situation in Ukraine. 68% believe that taxes paid on time will secure reasonable pension in future; the same number supports the introduction of tough criminal liability for tax evasion. Meanwhile, at least two-thirds of the polled are convinced that tax rates in Ukraine are too high. The latter thesis is the most supported by those already running own business. Moreover, among this category of the polled, the least supported are the statements about tough criminal liability for tax evasion and that taxes paid on time secure reasonable pension in future.
• 47% of the polled think the major part of the taxes should be directed to the social sphere (healthcare, education, pensions, and subsidies). 39% believe the taxes should be used to reform and develop the economy and to build new infrastructure of the country.
• More than 70% are convinced that it is necessary to increase taxes for the oligarchs and big business. Along with that, in terms of private entrepreneurships, small business, and hired employees, the thoughts on support of this initiative are quite the opposite. More than 70% stand for leaving the taxes for these categories with no changes or even reducing them. In terms of middle business, the thoughts vary as follows: 25% support tax increase for middle business, 30% stand for tax reduction, the same number supports no changes. Entrepreneurs and those who intend to start own business, unlikely other categories of population, are more inclined to support taxes reduction for all businesses except oligarchs.
• 85% support the strengthening of the responsibility for tax evasion for oligarchs and big business. 58% support this initiative in terms of the middle business. On the other hand, for representatives of small business thoughts are distributed as follows: about 40% support the strengthening of the penalties for tax evasion; the same number opposes this thesis. The number of the latter is higher among those already running own business.
• 60% have experienced the situation when the seller did not present any receipt for the goods or services purchased (29% - often, 31% - sometimes); 38% have not had such an experience. Young people and those who run own business have experienced such a situation more often.
• Over the last year, only 13% of the polled have received “envelope” salary, 85% have not had such an experience. Young and middle-aged people, those who intend to start own business and already engaged in private sector have mentioned receiving salaries in the “envelopes” more often (the latter category – 31%).
• Half of the polled are aware of the sum of taxes they pay to the state monthly while receive salary/income, almost 30% - are not aware; every fifth said he/she did not receive salary/income. Younger and middle-aged people, those with higher income, entrepreneurs and those who intend to start own business are more informed on the sum of taxes they pay to the state.
• Among the governmental entities, the army and the President are the most trusted by the polled (over 60%). Relatively high level of trust is recorded towards the Government (42%), the Verkhovna Rada (41%), and the SSU (37%). Towards other governmental entities distrust rather dominates. Thus, the coalition is trusted by 32%, not trusted by 53%; National bank of Ukraine – 28% and 45% correspondingly, State Customs Service – 21% and 55%, State Tax Service – 21% and 52%, Ministry of Finance – 18% and 52%. The lowest level of trust is recorded towards the courts (15% of trust and 66% of distrust) and prosecutors’ offices (14% and 70% correspondingly).
• Military reform is relatively better assessed by the polled – 31% of positive rates, 23% of neutral, the same number knows nothing about it, and only 14% of negative rates. Also, relatively good rates were given to the police reform: 18% of positive rates, 25% of neutral, and one-third of negative. The most negative rates were given to the courts and prosecutors’ offices reforms (32-35% - negative, 21% - neutral, 9-10% - positive, a quarter knows nothing about it). Relatively lower number of the polled are aware of the reforms of SSU, customs and tax services – 30% know nothing about changes in these institutions. Meanwhile, 10-13% assess them positively, 21-22% - neutral, and 24-25% - negatively.
Audience: residents of Ukraine aged 18 and older. The sample is representative in terms of age, gender, region, and settlement type. Total sample: 2000 respondents. Personal formalized interview (face-to-face). The margin of error does not exceed 2.2%. Period of the survey: 22-30 October, 2019.
