The Tax Committee of the Verkhovna Rada of Ukraine has adopted for the second first reading a government bill that provides for tax increases in several key areas. Currently, discussions are underway to increase the military levy, taxes for individual entrepreneurs (IEOs) and banks, as well as the introduction of advance payments at gas stations (GAS). Some MPs are expressing indignation that the changes are proposed to be implemented “retroactively.”.
The Tax Committee of the Verkhovna Rada adopted for a second first reading a version of the government bill on tax increases, People's Deputy Yaroslav Zheleznyak reported.
“Ministry of Finance: They will propose the implementation of tax increases “retroactively” from October 1,” Zheleznyak wrote on Telegram.
As Zheleznyak later added, the Verkhovna Rada Tax Committee adopted for a second first reading the government's version of the tax increase bill.
The document provides:
– increase in military tax from 1.5% to 5%
– increase in taxes for 1-2 groups of individual entrepreneurs
– advance payments at gas stations
– 1% on all forms of individual entrepreneurs of the 3rd group
– 25% of profits to financial institutions
– monthly personal income tax reporting (for economy bookings)
– 50% tax on bank profits in 2024.
“Since the law as a whole will not be adopted by October, the implementation will be “retroactive” from October 1.
Thus, for this year, such tax changes will bring UAH 58 billion in 2024, and UAH 137 billion in the next, Zheleznyak added.
