The Ministry of Finance of Ukraine plans to increase the military levy and value added tax (VAT). Forbes Ukraine reports this with reference to sources in the Verkhovna Rada and the Cabinet of Ministers. The draft law providing for these changes is already under development and may be submitted to the parliament by the end of June - beginning of July.
The military levy is planned to be increased from 1.5% to 5%, say the deputies. A similar tax rate of 5% may be introduced for individual entrepreneurs. There are also “discussions” about increasing VAT by 2-3%.
The key reason is the increase in military needs. One of the interlocutors from the Rada's finance committee estimates additional budget needs at UAH 400-500 billion. UAH 400 billion is needed only for the purchase and repair of military equipment.
