Ukraine is considering the possibility of introducing a progressive tax scale for citizens, which would involve individual taxation of each citizen. This was announced by the head of the Verkhovna Rada Tax Committee, Danylo Hetmantsev.
“The innovation involves the introduction of a scale of taxation of citizens depending on their income. That is, individuals with higher earnings will pay more tax, while those who receive lower incomes will pay less,” Hetmantsev noted.
Until 2016, a similar system partially operated in Ukraine, under which individuals with lower incomes paid 15% personal income tax, while those with higher earnings paid up to 20%. Currently, the rate is the same for everyone – 18%, but there are plans to differentiate it again.
“In practice, such a taxation strategy exists in many European countries – 'the rich pay more'. However, it is important to define the criteria for wealth and establish appropriate tax rates. This involves a deep reform of the tax system, which should gain public trust in taxes,” Hetmantsev emphasized.
The new taxation system also provides for full access to citizens' banking activities, including card-to-card transactions and cash replenishment through terminals. Thus, all citizens' income will be accounted for and taxed.
In addition, citizens will not have to fill out tax returns themselves, as the process is completely digital. The system will automatically generate tax reports and calculate payment amounts.
Therefore, for citizens who work in accordance with the law, the new taxation system will only bring simplification, while for those who work in the shadows or under gray schemes, taxes will become an integral part.
