New tax changes are on the horizon in Ukraine, which can seriously affect the financial situation of citizens and businesses. The government proposed to introduce a number of new fees aimed at increasing revenues to the state budget in the amount of UAH 140 billion. Among them is an increase in the military levy to 5% on the income of citizens and the introduction of a 1% levy for legal entities. In addition, it is planned to introduce a tax on the sale of real estate and new cars.
What will change for citizens?
According to the new proposals, the military levy rate on citizens' incomes will increase from 1.5% to 5%. This means that each employee will receive less in their hands, as the amount of the fee will increase significantly. For example, with a minimum wage of UAH 8,000, the amount of military service will increase from UAH 120 to UAH 400. Experts note that this may push many employers to pay salaries "in an envelope" or to reduce official salaries.
"This will have a negative impact on the income of local budgets, as part of the working people will remain exempt from taxation," says Glib Vyshlinskyi, executive director of the Center for Economic Strategy.
Military levy for business
The new tax changes will affect not only individuals, but also businesses. It is proposed to introduce a military levy in the amount of 1% on the income of legal entities, including entrepreneurs. This means that each stage of production and exchange of goods and services will be subject to an additional fee, which will lead to an increase in product prices.
Expert Volodymyr Dubrovsky notes that the turnover tax is impractical and can lead to negative economic consequences. "A sales tax reduces the attractiveness of market exchanges and may encourage greater vertical integration in business, which is not always effective."
New fees on real estate and cars
According to the new draft law, a 5% military tax will be imposed on the income from the sale of real estate. For example, when selling an apartment worth UAH 3 million, the fee will amount to UAH 150,000. In addition, a 15% tax on the purchase of new cars is planned, which will also be reflected in the cost of vehicles.
Experts believe that the innovations can provoke the emergence of new schemes to avoid paying taxes and increase the volume of the informal economy. Volodymyr Dubrovskyi expressed his concern, noting that "personal income taxes are the most harmful for economic growth," and raising the military levy will only worsen the situation.
What's next?
The project has not yet been submitted to the VRU finance committee, so changes to the document are possible after consideration in the parliament. Experts hope that, taking into account all comments, the draft law can be adjusted to avoid unforeseen economic consequences.
