Economy

Military duty may increase from 1.5% to 5%: expert explains why

ЕКСКЛЮЗИВ

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 ukrainskyi investment banker Sergey Fursa said that such a step was forced, as military operations continue in the country.

Moreover, this particular tax will be directed to the army, and therefore will benefit our Armed Forces.

“War always requires tax increases. We have just come to this point. And then we have to make a choice: which taxes we should raise to fill the budget, that’s all. The military tax is one of the possible options. It is probably not so desirable and easy to implement, because it can lead to an increase in unshadowing and so on, but it is a military tax. It is aimed at the army and its increase is quite logical,”

– the expert explained.

Sergiy Fursa emphasised that war always requires tax increases.

“This is the first time we have come close to raising taxes. Historically, we have a very unique situation when taxes have not been raised since the beginning of the full-scale invasion, which has never happened in the history of mankind,”

– fursa said.

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.

“It would be better to raise VAT and excise taxes and not to raise the military tax, but this is a matter of filling the budget. If raising VAT and various other excise duties does not help enough, then what else is there to do,” the expert said.

Main innovations of the draft law

MP Yaroslav Zheleznyak published a comparative table of the draft law on tax increases worth UAH 140 billion on his Telegram channel.

According to him, the Government is currently considering the relevant changes, which may include an increase in the military tax:

• raising the military tax rate to the income defined in Article 163 of the Tax Code
  Of the Code to 5 per cent
• establishing the obligation of legal entities to pay the military fee in the amount of
  1 per cent of income from any activity for income tax payers
  enterprises and single tax payers of groups 3 and 4;
• establishing the obligation to pay a military fee of 5 per cent in the
  in the calculation of two minimum wages per month by individuals
  entrepreneurs and single tax payers of the first, second and fourth groups;
• establishing the obligation to pay the military fee in the amount of 1 per cent of income
  by individual entrepreneurs who are single tax payers of the third group;
• establishing the obligation to pay a military duty in the amount of 5 per cent of
  of the value of precious metals by legal entities and individuals that carry out
  transactions for the purchase of precious metals from banks;
• establishing the obligation to pay a military duty in the amount of 30 per cent of the
  of the value of jewellery sold by enterprises, institutions and
  organisations and individual entrepreneurs engaged in retail trade in jewellery
  trade in jewellery made of gold, platinum and precious stones (including
  including those made from tolling raw materials);
• the obligation to pay military duty in the amount of 15 per cent of the
  of the value of acquired movable property by enterprises, institutions T a
  organisations, individuals who acquire ownership of passenger
  cars subject to the first state registration in Ukraine
  territorial bodies of the Ministry of Internal Affairs of Ukraine, except for
  cases of providing cars to persons with disabilities in accordance with the law;
• establishing the obligation to pay a military tax in the amount of 5 per cent of income
  from the sale of immovable property by individuals who sold one property during the reporting
  tax year, who sold one real estate object;
• establishing the obligation to pay the military duty in the amount of 5 per cent
  electronic communication service providers that provide
  paid by the end users of such services;
• establishing the obligation to make monthly advance payments of corporate
  corporate income tax by taxpayers engaged in
  fuel retail trade in the amount of 0.5 of the minimum wage,
  established by law as of 1 January of the reporting (tax) year, at the rate of
  per 1 cubic metre of tanks for storage of petrol and diesel fuel and
  liquefied gas located at the place of retail sale of fuel included in the
  The Unified Register of Fuel Licensees and Points of Sale;
• establishing a specific excise tax rate of EUR 0.1 per 1 litre of
  of beverage.

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