Potential for Fiscal Policy Reforms in Post-War Ukraine

We analyze the major challenges for the Ukrainian tax system for the post-war recovery of Ukraine. We identify four areas of concern: a large shadow economy, high taxation of labor income and a complex filing process and limited redistribution. For example, self-employed persons face only a flat tax of 5% and property taxation does not take the value of real estate into account. Ukraine has the inequality of Estonia but without the benefits of simplicity and efficiency. Using the fiscal systems of Estonia, the Netherlands and Poland as inspiration we come up with realistic reforms in the income taxation, property and corporate taxation and VAT that would benefit the post-war reconstruction and economic development of Ukraine