Teachers and doctors want to raise taxes: by how much
18 September 2024 18:14
The salaries of teachers, doctors and state employees will now be subject to a 5% tax rather than a 1.5% military tax. This was reported by was written on her Telegram channel, according to [Kommersant].
The parliamentarian drew attention to the fact that the government plans to spend UAH 25 billion from the state budget in 2025 on the preparation and implementation of public investment projects. At the same time, this UAH 25 billion is the amount that is planned to be raised by increasing the military tax on the salaries of all employees for one quarter to 5%.
This is stated in the draft law 11416-дwhich the Verkhovna Rada adopted in the first reading on 17 September. At that time, 241 MPs voted in favour. Most of them are MPs from the Servant of the People and the OPFL.
“It is clear that anyone who gives another part of their own money to the budget as a result of the increased rate of military tax thinks that they are giving it to the military. But in fact, they can (give it – ed.) for the construction of industrial park networks, the reconstruction of the passenger terminal at Boryspil airport, the purchase of electric trains and the renewal of electric locomotives for Ukrzaliznytsia, etc.” Yuzhanina wrote.
What is the draft law 11416-d about?
The initiators of the draft law, which was registered in parliament on 30 August 2024, were Danylo Hetmantsev, Oleksandr Lukashev and Andriy Motovylovets.
In the explanatory note, the authors of the document emphasised that the purpose of the draft law is to create conditions for the proper functioning of the economy during martial law, as well as to properly fill the budget revenue side through tax payments.
What the draft law provides for:
- increasing the rate of the military tax to the income defined in Article 163 of the Tax Code of Ukraine from 1.5% to 5%;
- establishing the obligation to pay the military fee in the amount of 1% of income by single tax payers of the third group;
- setting the military duty for individual entrepreneurs – single tax payers of the first, second and fourth groups at 10% of the minimum wage;
- setting the basic corporate income tax rate for the purposes of taxation of profits of non-bank financial institutions (except for insurers) at 25%;
- improvement of the proposed model for determining the amount of advance payments for the purposes of corporate income taxation of companies engaged in retail fuel trade;
- monthly PIT reporting.
It is worth noting that draft law 11416-d has already been criticised.
“The draft law did not take into account proposals to tax the gambling business, increase excise taxes on tobacco and alcohol, or rent for subsoil extraction. But it increases the pressure on small and medium-sized businesses,” wrote mP Iryna Gerashchenko wrote.
“Business has lost in the discussion between business and the government on tax increases,” summed up Oleg Gorokhovsky, co-founder of Monobank.
“The government categorically refuses to allocate funds from the military tax to the special fund for the needs of the defence forces, as they have other plans,” said MP Nina Yuzhanina.
