On Monday, September 16, the Committee on Finance, Tax and Customs Policy of the Verkhovna Rada of Ukraine will re-examine the government bill on tax increases. This became known after Yaroslav Zheleznyak, People’s Deputy from the “Golos” faction, published the text of the document.
In the new version of the draft law No. 11416-d, most of the provisions of the previous version, which was rejected earlier, have been preserved, but new proposals have been added to it. In particular, it is about raising taxes on financial institutions. The main changes include:
- An increase in the military tax rate from 1.5% to 5%.
- Increase in tax rates for individual entrepreneurs (FOP) of the 1st and 2nd groups.
- Introduction of advance payments at gas stations.
- 1% tax for all forms of FOP of the 3rd group.
- 25% income tax for financial institutions.
- Introduction of monthly reporting on personal income tax (PIT).
- 50% tax on bank profits in 2024.
This bill, even if passed, is not expected to take effect until October. As noted by the authorities, this may cause certain difficulties due to the application of changes “retroactively”, which will cause certain misunderstandings.
According to forecasts, these tax innovations should bring about 58 billion hryvnias to the state budget of Ukraine in 2024 and 137 billion hryvnias in 2025.
However, People’s Deputy Zheleznyak noted that even taking into account this increase in taxes, the state’s financial needs for the next year will not be fully met. According to him, if Ukraine does not receive grant aid in the amount of 50 billion dollars from the G7 countries, the authorities will be forced to reconsider the possibility of further tax increases.
