Ukraine registers an alternative draft law on economic reservations

Draft law No. 11332-2 on reservation of conscripts was submitted to the Verkhovna Rada of Ukraine.

The main goals of the draft law include:

  • Ensuring the smooth operation of enterprises, institutions and organizations that are of critical importance for the economy and the life of the population in the conditions of mobilization.
  • Establishing clear criteria and procedure for booking conscripts who work in important areas of the economy.
  • Increasing the efficiency of mobilization and ensuring the possibility of functioning of enterprises, institutions and organizations that are critical for the economy of Ukraine.

The draft law provides for the abolition of the fee for the reservation of conscripts for economic entities under martial law, which pay the Single Social Contribution more than the equivalent of five minimum wages. The fee will amount to 1,200 tax-free minimum incomes of citizens.

The draft law also specifies that conscripts who work or serve in enterprises, institutions and organizations with a full-time workforce of 10 or more and pay a single social contribution greater than the equivalent of five minimum wages are subject to reservation.

Adoption of the draft law will contribute to:

  • Increasing the level of national security and defense capability of the state.
  • Ensuring the stable functioning of enterprises, institutions and organizations under martial law.
  • To improve the organization of booking conscripts.
  • To strengthen the economic stability and vital activities of the population in the conditions of a special period.
  • Increase in revenues to the state budget of Ukraine for the needs of the Armed Forces.
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