The draft law of the Cabinet of Ministers of Ukraine on increasing the tax base, which has caused a lot of controversy and criticism, will not be adopted in its original form. This was stated by People's Deputy of Ukraine Yaroslav Zheleznyak at a briefing, noting that the government initiative will undergo significant changes.
“The government bill will not be adopted in this form. That's it, they forgot about it. I have a feeling that next plenary week we will begin to consider the bill in the first reading of the new version, which will be introduced either by the deputies from the coalition or by the Cabinet of Ministers of Ukraine. There will be many changes that will be the result of negotiations with business. Well, a lot,” Zheleznyak said.
The politician believes that the revised version of the bill will retain the provision on military levy, but other initiatives are still under question. He emphasized that the government and the Ministry of Finance should take into account the need for additional funds, which could reach from 80 to 125 billion hryvnias.
“This will be a significantly different text. But, once again, this is a question for the coalition, for the government,” the deputy noted, emphasizing that taking into account the comments of business will become a key aspect in forming the new wording.
Zheleznyak also expressed doubts about the possibility of raising the VAT, noting that the chances of this currently remain low. He emphasized that this decision will depend on how much money is needed to meet state needs.
Recall that on July 18, the government adopted two bills on raising taxes and increasing military spending in the state budget. They were submitted for consideration by the Verkhovna Rada of Ukraine. The press service of the Ministry of Finance explained that the tax increase is due to the need to find an additional 500.3 billion hryvnias to meet the critical needs of the state, including defense financing.
According to the Ministry of Finance, the bulk of the additional funds for defense financing (361.6 billion hryvnia) will be provided through domestic borrowing, overfulfillment of current state budget revenues, and savings on certain expenditures. The remaining 138.7 billion hryvnia is planned to be obtained through a revision of the military levy, excise taxes, and other measures, including the introduction of an excise tax on sweetened beverages.
