Draft law on tax increases: The Cabinet of Ministers has changed the document
26 August 2024 17:20
The Government has finalised the text of the of the draft law on tax increases and is preparing to present it to the relevant committee in early September. This was reported by "Komersant Ukrainian" reports citing a post by MP Yaroslav Zheleznyak on his Telegram channel.
Here is what is left in the document from the first version of the draft law:
- establishment of monthly advance payments for petrol stations (but the wording has been changed);
- increase in the military tax rate from 1.5% to 5%;
- establishing a WHT for sole proprietors of the first and second groups in the amount of 10% of the minimum wage;
- establishing a 1% CPT for the third group of the single tax.
What the government added to the draft law:
- setting the corporate income tax rate for banks at 50% for 2024;
- increasing the corporate income tax rate for financial companies to 25%;
- monthly personal income tax reporting.
Earlier, it was reported that the IMF supported the government’s plans to raise taxes in Ukraine. This was stated by Gavin Gray, head of the IMF mission in Ukraine, during an online event organised by the Centre for Economic Strategy.
“Some increase in tax rates is unfortunately necessary… The Ukrainian government is doing the right thing by changing its domestic policy,” he said.
Gray also added that the war with Russia will last longer and will continue next year (2025 – ed.). This will have its consequences – budget expenditures will increase, and hopes for a speedy recovery will have to be postponed.
