Ukrainians may be subject to a new tax measure announced by the government. The National Revenue Strategy envisages taxing card-to-card transfers at a rate of 18%. This means that every transaction made on a bank card will be subject to tax.
Anatoliy Amelin, director of economic programs at the Ukrainian Institute for the Future think tank, said in a statement. The new initiative is part of a broader income strategy that covers all income of individuals received outside of entrepreneurial activity.
According to the text of the document, “all income of individuals received outside of entrepreneurial activity, except for those directly provided for by the Tax Code of Ukraine, will be subject to taxation at the general personal income tax rate.”
Economist Oleg Pendzin explained that the idea of taxing transfers is not new, but until now the tax service did not have access to citizens' accounts. Now the authorities plan to give tax authorities access to the personal accounts of Ukrainians, violating banking secrecy.
It is not yet clear how exactly each card transaction will be taxed, but this new initiative raises questions about privacy and control over citizens' financial transactions.
