People's deputy Yaroslav Zheleznyak shared important details of the final draft of the law on tax increases, which will soon be submitted for consideration by the specialized committee and, probably, the parliament. These changes should significantly affect the financial policy of the country, especially in the conditions of war and economic instability.
What remains of the old text?
Some of the main provisions of the old version, which were widely discussed earlier, remained in the updated draft law:
- Increase in the military levy rate : From 1.5% to 5%. This measure is aimed at increasing revenues to the budget to support defense spending.
- Establishment of a military duty for FOP : A military duty of 10% of the minimum salary will be introduced for entrepreneurs of the first and second groups.
- The rate of the military levy for the III group of the unified tax : In the amount of 1%.
- Monthly advance payments for gas stations : With the amended version of the document.
What is new in the draft law?
The new provisions of the draft law include:
- Income tax rate for banks : Setting the rate at 50% for 2024. This is a significant increase, which aims to mobilize additional funds for the state budget.
- Increase in the income tax rate for financial companies : Up to 25%. It is also part of the government's efforts to fill the budget.
- Monthly reporting on personal income tax : An innovation that aims to increase transparency in matters of personal income taxation.
Budget deficit financing and the IMF's response
The government of Ukraine, for the first time since the beginning of the full-scale invasion, proposed such significant changes in tax policy to compensate for the deficit in the state budget caused by defense and reconstruction spending. Raising the military levy, introducing a new income tax for banks and financial companies are part of this strategy.
However, the International Monetary Fund (IMF) expressed concern that the tax increase could affect the willingness of Western countries to continue providing financial assistance to Ukraine. This issue may become important during the next negotiations with international partners.
Prospects for adoption of the draft law
Yaroslav Zheleznyak noted that the draft law in its current version, proposed by the Cabinet of Ministers, will not be adopted. However, this does not mean that the idea of raising taxes has been rejected. The draft law will be discussed and refined at the committee and parliamentary level, and changes are possible in its final version.
