February 21, 2025, at the initiative of the Institute for the Development of Real Estate Market of Ukraine (IDREMU) Plectan, a meeting of the heads of business associations and members of the National SME Platform took place. The main issue was planning an advocacy campaign aimed at reducing the tax burden on micro, small, and medium businesses.

Growing tax burden – a threat to entrepreneurship

Recent changes in the tax policy seriously affect businesses, especially entrepreneurs who operate under a simplified taxation system. Increasing tax pressure brings about several negative consequences:

▪️ Decreased profitability – Additional tax rates increase entrepreneurs' costs, negatively impacting their financial stability.

▪️ Possible price increase – To compensate for losses, businesses are forced to raise the prices of goods and services, which lowers the purchasing power of the population.

▪️ Risk of shadow economy – Some entrepreneurs may go into the shadows to avoid high taxes, leading to reduced budget revenues.

▪️ Business closures – There is already a trend of mass closures of individual entrepreneurs due to the inability to adapt to new financial conditions, which increases the unemployment rate.

Advocacy – the only way to protect business

The meeting participants reached a common conclusion: business associations must actively fulfill their main function – advocacy, to ensure favorable conditions for doing business. Without systematic work in this direction, entrepreneurs will face even greater challenges.

The head of the Association of Real Estate Professionals of Ukraine (AREPU) Olena Haidamaka emphasized: "We must unite our efforts and clearly articulate our demands to the government. Business is the foundation of the economy, and we cannot allow it to be destroyed by excessive taxes."

The head of the Institute for the Development of Real Estate Market of Ukraine (IDREMU) Plectan Oleksandr Pechalyn noted: "It is critically important now to develop an effective advocacy campaign and convey it to the government. Business associations are the voice of entrepreneurs, and we must act together."

The head of the National SME Platform Hanna Strykun added: "Today we agreed on specific next steps. We urge all business associations to join the advocacy, as only by uniting can we influence government policy."

Next steps

🔸 Formation of a joint appeal to the government with demands to reduce the tax burden.

🔸 Conducting round tables and public hearings to discuss the issue.

🔸 Development of an analytical study on the impact of taxes on small business.

🔸 Organization of an information campaign to engage more entrepreneurs in advocacy.

Micro, small, and medium businesses are the foundation of the Ukrainian economy. If we do not defend our rights, we risk losing the ability to operate legally and transparently. We urge business associations to join the advocacy campaign and together influence the future of entrepreneurship in Ukraine.

➡️ Join the fight for favorable tax conditions – the future of business depends on us!