According to the Centre for Policy Analysis “Zmist”, over 85% of residents of rural hromadas want to stay where they live – but expect better services, more opportunities for development, and greater involvement in local decision-making. To meet these expectations, hromadas need a stable financial base. However, today PIT – the main source of local budget revenues – follows the employer rather than the individual: it is allocated to the hromada where a business is registered, not where the employee lives and uses public services.
Experts from Polaris, together with “U-LEAD with Europe” and the Ukrainian Centre for Social Reforms, analysed how the budget landscape would change if PIT were allocated based on the taxpayer’s place of residence or registration. The modelling shows that around 80% of hromadas would strengthen their own revenue base.
The full report with scenarios and impact models is available at the link.
The series of visualisations presents selected figures and findings from the study, illustrating the scale of the potential impact.
