“Servant of the People” wants to introduce a tax for childless and not large families
21 May 2024 10:11
MP Serhiy Hryvko of the Servant of the People party proposes to introduce a “demographic fee”. This is stated in the registered draft law No. 11264 “On Amendments to the Tax Code of Ukraine and Other Laws of Ukraine on Creating Preconditions for Improving the Demographic Situation in Ukraine,” "Komersant Ukrainian" reports
The MP proposes to make all individuals – residents of Ukraine aged 21 to 58 years – payers of the “demographic fee”. It is proposed to introduce the following fee rates:
- 1.5 per cent of the taxable object – for people who do not have children;
- 1 per cent of the taxable object – for persons with one child;
- 0.5 per cent of the taxable object – for persons with two children.
Exceptions will be made for persons with three or more children; persons with infertility or impaired reproductive function that makes motherhood (fatherhood) impossible, with confirmation of the relevant circumstances by appropriate medical documents at least once every 2 years; persons with the status of persons with disabilities of group I.
The text of the draft law states that the object of taxation of the fee is all income received by the fee payer in cash using non-cash payments, except for the following categories of income
- funds received by individuals – entrepreneurs and persons engaged in independent professional activities to current bank accounts in the course of entrepreneurial and/or independent professional activities;
- income in the form of financial support for law enforcement officers, servicemen and employees of the Armed Forces of Ukraine, the National Guard of Ukraine, the Security Service of Ukraine, the Foreign Intelligence Service of Ukraine, the State Border Guard Service of Ukraine, private, senior officers, military personnel, employees of the Ministry of Internal Affairs of Ukraine, the State Protection Department of Ukraine, the State Service for Special Communications and Information Protection of Ukraine, and other military formations established in accordance with the laws of Ukraine
- funds received by volunteers registered in the Register of volunteers of the anti-terrorist operation and/or implementation of measures to ensure national security and defence, repulse and deter the armed aggression of the Russian Federation, to accounts opened in banks in the name of such volunteers, which are used exclusively for charitable activities;
- funds received by a person from the redemption of domestic government bonds;
- funds paid to a person as a return of a bank deposit;
- funds received by a person from the sale of real estate and vehicles owned by him/her;
- funds received by a person from international public, charitable and other organisations, as well as from representative offices of international organisations in Ukraine as charitable donations and other types of financial assistance.
This will also not apply to funds received by an individual on credit from a bank or other financial institution, as well as funds credited to accounts with banks and other financial institutions as repayment of the individual’s credit obligations to these institutions.
As stated in the explanatory note to the draft law, its purpose and objectives are to create preconditions for improving the demographic situation in Ukraine, providing comprehensive (financial, social, psychological, legal and other) support to families with children (in the long term, also providing support to young Ukrainian citizens entering adulthood), providing families with children with affordable housing, vehicles, meeting their other socio-economic needs, as well as raising the prestige of motherhood (fatherhood) and stimulating the development of the family.
It should be noted that MP Serhiy Hryvko is a co-initiator of the scandalous draft law No. 7351, which granted commanders the right to execute soldiers in combat situations for disobeying orders without a trial. The draft law was assessed by the media as an attempt to restore the death penalty in Ukraine. The draft law passed the relevant council, was heavily criticised on social media and in the media, and was withdrawn without explanation, later the draft law’s authors changed, and the party refused to comment on the draft law.
Hryvko also proposed in draft law No. 10057 that prisoners could reduce their sentences by working on “bicycle generation units” that would be placed on the territory of prisons.
