The government has not explained to MPs the rationale for raising the military tax. Deputy Chairman of the Rada Tax Committee Yaroslav Zheleznyak said he would not support the tax increase, UNN reports .
Details
The government submitted bills to the Verkhovna Rada to raise taxes and amend the state budget for 2024. The Cabinet of Ministers proposes to the Parliament to increase the military tax rate to 5%, and to 30% for certain transactions. Hetmantsev supported the government's initiative, noting that he sees no other options than to agree to the Cabinet's proposal to raise certain taxes (military duty, excise taxes, in particular on fuel and tobacco), increase the relevant tax base, and place more domestic government bonds, which may also include NBU issuance.
Yes, this is a bad decision that will hinder economic recovery, the growth of citizens' incomes, and potentially pose risks to macrofinancial stability. However, there is no other way to close the gap in the military now, because in a few months we will face a significant shortfall in the current maintenance of the army, which will begin to deepen sharply by the end of the year,
However, Deputy Chairman of the Tax Committee Yaroslav Zheleznyak disagreed with this opinion.
Okay, my position on the government's initiative to raise taxes. It's just a shame. It's not just that some points are unclear where they came from, some random ideas that are not connected by logic or necessity. Then, for PR purposes, they called this whole mix of fantasy and borscht in one word "military tax" and introduced it to the Rada without any explanation, shouting "we urgently need money,
According to him, it is not clear why such taxation changes are proposed and what calculations they are based on. "How can we be sure that this will not increase the shadow? Why make things much more complicated and create additional administration where it could be avoided? How will some things work in practice?" Zheleznyak said.
He added that the government had not communicated with MPs about the proposed tax increase.
So no, I will NOT support this work in this form. And even now it does not have not only 226, but even 150 votes. And it will not be. I responsibly realize that the Government has dragged the situation to a critical point. But any tax increase should at least avoid a lot of unnecessary bureaucracy for businesses and people. The same idea with VAT, although also painful, is at least logical,
At the same time, the MP was surprised that the budget amendments hardly reduce public spending. "It's not fair to business and people to ask them to understand the situation and leave public spending as it was? Where are the cuts in inefficient programs? Where is the UAH 3 billion cut for nonsense like cashback and TV series? Where are the additional revenues from the tariff increase in the form of dividends from Energoatom?" the MP was outraged.
Zheleznyak added that the text of the draft law on tax changes should be significantly changed "without the ridiculous, non-working PR called ‘military duty’.
All unnecessary expenses must be cut. "At the same time, we have to show that the situation when the state loses equivalent money on smuggling, illegal markets and procurement will not happen again. Therefore, we are waiting for the vote on customs reform and the launch of the commission to select the head of the BES. Only then can we talk about something," he said.
Add
Hetmantsev has repeatedly voiced the idea of raising taxes in Ukraine. According to economic expert Yuriy Havrylechko, the elimination of tax and customs and the transfer of the economy to a war footing may be an alternative to Hetmantsev's idea of raising taxes to close the budget gap.
Recall
The Verkhovna Rada of Ukraine has passed the scandalous draft law on the "white business club" by the head of the parliament's tax committee, Danylo Hetmantsev. The document was criticized by both Mr. Hetmantsev's colleagues in parliament and experts. Even legal opinions stated that it did not comply with Ukrainian law. For the law to come into force, it must be signed by the President. The head of state also has the right to veto the document.
According to experts, this draft law aims to divide entrepreneurs and undermine their efforts on tax reform.
In comments to UNN, economic experts also pointed out that the document violates the Constitution of Ukraine and creates discriminatory conditions in the business environment.
Analysts of the Union of Ukrainian Entrepreneurs also concluded that Hetmantsev's draft law contains discriminatory norms and has corruption risks.
Business Ombudsman Roman Vashchuk also stated that the draft law on the "white business club" is discriminatory.