The Ministry of Finance continued the dialogue with business regarding tax increases: details
Kyiv • UNN
The Ministry of Finance is continuing its dialog with business on tax changes to fill the budget. Proposals for an advance payment of the corporate income tax and other measures to secure additional UAH 500 billion for defense are being discussed.
Deputy Minister of Finance Svitlana Vorobey discussed with representatives of the Ukrainian Oil and Gas Association and Ukrnafta PJSC government proposals for the state budget revenues from taxes as well as additional sources to finance the needs of the security and defense sector.
The parties agreed on the need to make additional calculations to determine the amount of advance payment of income tax for taxpayers engaged in retail fuel trade.
UNN reports this with reference to the Ministry of Finance.
It is reported that the Ministry of Finance of Ukraine continues an open and constructive dialogue with representatives of business associations from various sectors of the economy on the design of tax changes for the period of martial law.
Today, Deputy Minister of Finance Svitlana Vorobey discussed with representatives of the Ukrainian Oil and Gas Association and Ukrnafta PJSC the government's proposals to fill the state budget with taxes as well as additional sources to finance the needs of the security and defense sector.
"The parties agreed on the need to make additional calculations to determine the amount of advance payment of income tax for taxpayers engaged in fuel retailing," the statement said.
It is noted that last week, meetings were held with representatives of the Ukrainian Business Council, the All-Ukrainian Agrarian Council, the Ukrainian Agribusiness Club, the American Chamber of Commerce in Ukraine, the European Business Association, the NGO "Jewelers of Ukraine" and the Union of Jewelers of Ukraine. Vorobey emphasized that military expenditures are covered exclusively by domestic revenues and borrowings. All possibilities to quickly meet the additional needs of the military state 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. Three quarters of this amount is proposed to be covered by measures that do not involve tax increases. And only one quarter is to be provided by revising the military fee, excise rates and other tax payments, which should ensure revenues to the state budget of UAH 138.7 billion by the end of 2024 and UAH 340 billion in 2025
The discussions were held with the participation of representatives of the Verkhovna Rada Committee on Finance, Taxation and Customs Policy.
Among other things, they discussed the possibility of replacing the 1% business turnover tax with VAT and emphasized that all the adopted tax changes will be valid only for the period of martial law
Context
The authorities are planning a significant tax increase this year. According to the government, the budget lacks UAH 500 billion to finance the defense sector. In this regard, a draft law has been submitted to the Verkhovna Rada that would increase the military tax.
It provides, among other things, for an increase in the military tax rate to 5%, and for some transactions to 30%. The document has been harshly criticized by representatives of the expert community, business representatives, and MPs themselves
