Verkhovna Rada Committee Supports Draft Law on Tax Increase for Second Reading
Kyiv • UNN
A Verkhovna Rada committee has approved a draft law on tax increases for the second reading. The document envisages an increase in the military tax to 5%, the bank profit tax to 50%, and other changes.
A Verkhovna Rada committee has supported a draft law on tax increases for the second reading. The document proposes an increase in the military tax from 1.5% to 5%, as well as an increase in the bank profit tax to 50%, said MP, deputy head of the Committee on Tax Policy Yaroslav Zheleznyak, reports UNN.
The Committee supported the draft law on historic tax increases #11416d for the second reading. In favor - 19. Abstentions - 3 (including me). Against - 1
The MP spoke about the main provisions of the document:
- left the increase in the military tax (MT) from 1.5% to 5%;
- implementation of the sun for fops;
- 50% tax on banks;
- increase in the MPZ for land;
- 25% of the CPT for financial companies;
- exemption of cashback from taxation;
- transition to monthly personal income tax reporting;
- increase in rent for crushed stone extraction.
but the government refused to postpone it to November 1 or partially replace it with an increase in VAT, according to Zheleznyak.
The document will be considered in the Verkhovna Rada next week and signed into law in the second half of October. However, I pointed out that some of the provisions will come into effect retroactively, on October 1.
AddendumAddendum
In July, the Cabinet of Ministers submitted a draft law to the Verkhovna Rada to raise taxes. The government expected that the law would bring in an additional UAH 125 billion to the budget in 2024.
Later it became known that the draft law had been finalized and was planned to be put to a vote in the Rada in the first weeks of September.
The draft law, among other things, planned to set corporate income tax rates for banks at 50% for 2024. The additional budgetary resources of UAH 125 billion planned in the draft law on tax increases were reduced by 4 times to UAH 30.1 billion.
It was also planned to increase the military tax rate from 1.5% to 5%.
Establishing the obligation to pay a military fee of 1% of income by single tax payers of the third group.
Setting the basic corporate income tax rate for the purposes of taxation of profits of non-bank financial institutions (except for insurers) at 25%.
Already in September, the Verkhovna Rada failed to pass a bill to increase taxes by 30 billion hryvnias in the first reading with 224 votes in favor and 226 votes against. The document was sent back for a second first reading.
Nevertheless, on September 17, the Verkhovna Rada of Ukraine supported in the first reading the draft law No. 11416d on increasing taxes by UAH 58 billion this year and UAH 137 billion next year with 241 votes in favor.
