Tax increase and military duty for individual entrepreneurs: what “surprise” is the Government preparing for business
19 July 2024 14:42
The Cabinet of Ministers of Ukraine has prepared a draft law that dramatically increases taxes and introduces a military tax. This was announced by Ukrainian MP Yaroslav Zheleznyak, reports
The MP claims that in this way the government plans to raise an additional UAH 140 billion, but he did not specify for what period.
In particular, the following innovations are proposed for business:
- to introduce a military tax for individual entrepreneurs of groups I, II and IV in the amount of 5% of two minimum wages per month (i.e. a total of UAH 800 per month);
- to introduce a military tax for private entrepreneurs of group III – 1% of income (in total, such private entrepreneurs will pay 6% of income: 5% of the single tax and 1% of the military fee).
- 5% of the value of precious metals;
- 30% of the value of jewellery;
- 15% of the value of cars purchased by legal entities and individuals (except for cases when such cars are provided to persons with disabilities);
- 5% of income from the sale of real estate by individuals who sold one property during the year;
- 5% of the tariff for the use of mobile communications.
When taxes will increase
These rules have not yet been adopted.
The government is expected to review and approve the draft law in the near future.
After that, it will be considered by the Verkhovna Rada and, most likely, adopted. According to Danylo Hetmantsev, Chairman of the Verkhovna Rada’s Tax Committee, there is no alternative to raising taxes.
As a reminder, the Cabinet of Ministers of Ukraine is planning tax changes. According to a published document, the government plans to raise the military tax, which currently stands at 1.5%, to 5%.
In a commentary to Kommersant, Ukrainian 
investment banker Sergey Fursa said that such a step was forced, as military operations continue in the country. In his opinion, a better solution would probably be to raise VAT or excise taxes, but the most important thing is to fill the budget.
