Dialogue with business on the sources of budget revenues continues: the Ministry of Finance discusses taxation of imported cars
Kyiv • UNN
The Ministry of Finance has held meetings with business representatives to find additional UAH 500 billion for defense in 2024. It is proposed to revise the military duty and excise taxes, which will provide UAH 138.7 billion by the end of 2024.
The Ministry of Finance of Ukraine has held a series of meetings with business representatives to find a compromise that will allow to form sources to finance additional needs of the security and defense sector. This was reported by UNN with reference to the Ministry of Finance.
Details
This week meetings were held with representatives of the Federation of Employers of Ukraine, the Ukrainian Chamber of Commerce and Industry, the Union of Ukrainian Entrepreneurs, the automotive industry and mobile operators with the participation of representatives of the Verkhovna Rada Committee on Finance, Taxation and Customs Policy.
Representatives of associations from various sectors of the economy understand the importance and need to quickly find resources to meet the additional needs of the security and defense sector. Technical details are currently being discussed to find the optimal design of tax changes, taking into account the position of various industries.
In particular, during a meeting with representatives of the automotive industry, the issue of administering the domestic car market was raised.
We are talking about the taxation of new and used imported cars and exemptions for the secondary market. Buying a new imported car in wartime is not a basic need. If you need transportation, you can buy a used car on the secondary market. That is why, by imposing the military tax on new imported cars, we can ensure the military budget and stimulate the domestic market for car production and repair
The ministry emphasizes that military expenditures are covered exclusively by domestic revenues and borrowings. All possibilities to quickly meet the additional needs of the military budget without revising taxes have been exhausted.
Therefore, the Ministry of Finance has proposed a number of measures to meet the additional needs of the Defense Forces in the amount of UAH 500 billion in 2024.
The Ministry emphasizes that three quarters of this amount is proposed to be provided by measures that do not involve tax increases.
And only one quarter is due to the revision of the military fee, excise rates and other tax payments, which should provide revenues to the state budget in the amount of UAH 138.7 billion by the end of 2024 and UAH 340 billion in 2025
They also noted that all the changes proposed in the government's version of the draft law "On Amendments to the Tax Code of Ukraine and Other Laws of Ukraine on Peculiarities of Taxation during the Period of Martial Law" will be canceled after the end of martial law.
Recall
Deputy Governor of the National Bank Yuriy Geletiy said that Ukraine's budget deficit this year may exceed 20%. Nevertheless, Kyiv hopes to cover these costs through regular financial support and high liquidity of banks, as well as additional resources from the domestic market.