Economy

This week, MPs may consider a bill to raise taxes

EXCLUSIVE

MPs may consider draft law No. 11416-d on tax increases as early as this week. Oleksiy Leonov, a member of the Committee on Finance, Taxation and Customs Policy, told Komersant ukrainskyi in an exclusive commentary.

“Most likely, the draft law will be considered this week, as it has already been considered by the committee and approved for consideration in the second reading,”

– leonov said.

Last Friday, the Verkhovna Rada Committee on Finance, Taxation and Customs Policy recommended the adoption of a draft law that proposes to raise taxes. This was reported by Danylo Hetmantsev, Chairman of the Tax Committee , on his Telegram channel.

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Provisions of the draft law:

• increase of the military tax for the period until 31 December of the year in which martial law is terminated, namely: increase of the rate from 1.5% to 5% for personal income; establishment of the military tax at 1% of the income of single tax payers of the third group; establishment of the military tax for individual entrepreneurs – single tax payers of the first, second and fourth groups at 10% of the minimum wage;
• setting the corporate income tax rate for banks at 50% for 2024;
• setting the corporate income tax rate for non-bank financial institutions (except for insurers) at 25% from 1 January 2025;
• improving the proposed model for determining the amount of advance corporate income tax payments for petrol stations;
• change of the tax period from quarterly to monthly for reporting on paid income in favour of individuals (for economic bookings) from 1 January 2025;
• pegging the advance payment rate for currency exchange offices to the euro;
• extension until the end of the martial law of the exemption for charitable aid received from the budgets of other states;
• changes to rent in terms of PSO and crushed stone;
• exemption from taxation of income received under the “Made in Ukraine” programme;
• changes to minimum retail prices for wine;
• changes to the minimum tax liability;
• instructing the Cabinet of Ministers to develop a draft law on the transfer of the military fee to the special fund of the State Budget.

Previously analysed why Ukraine decided to raise taxes and what the consequences might be.

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Author: Alyona Kaplina

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