The draft law on raising taxes has been greatly reduced. Now it will bring 4 times less money

Some norms were canceled in the revised government draft law on tax increases No. 11416. Now the planned resource of 125 billion hryvnias has decreased by 4 times — to 30 billion.

This was reported by the Chairman of the Verkhovna Rada Committee on Finance, the MP from "Servant of the People" Danylo Hetmantsev and his first deputy, the MP from "Voice" Yaroslav Zheleznyak.

According to the results of the working group on the resource draft law, it was decided, in particular, to limit the increase in the military levy to the tax period in which martial law will be abolished.

Also, the military levy is planned to be directed through a special fund exclusively for the financing of the Ukrainian Armed Forces.

A tax of 50% on excess profits of banks was also removed from the project. Hetmantsev explained that this was the categorical position of the Ministry of Finance and the National Bank of Ukraine. Zheleznyak added that the International Monetary Fund (IMF) was also against it, as there were risks of domestic borrowing.

"The advance payment from the gas station has been clarified somewhat. And we will increase the tax rate on the income of financial institutions for the future, and not for 2024 as proposed," Hetmantsev explained.

It was also decided to remove the 1% military tax for legal entities from the single tax of group 3.

Hetmantsev published the calculations of the Ministry of Finance, according to which an increase in the military levy on the income of Ukrainians from 1.5% to 5% in 2024 will give the budget 27.3 billion hryvnias, in 2025 — 107.7 billion hryvnias.

Earlier, Hetmantsev also noted that the military levy on luxury items was removed from the project, and the document does not provide for an increase in VAT. Zheleznyak wrote that the project included an increase in the income tax rate for financial companies to 25%.

• On July 18, the Cabinet of Ministers approved two draft laws: the first one — on changes to the Tax Code to finance additional military expenditures, and the second one — on changes to the state budget to increase military expenditures. The government estimates additional critical needs at 500.3 billion hryvnias, including 495.3 billion hryvnias for defense.
• A number of businessmen sharply criticized the project to raise taxes. At the end of July, Hetmantsev wrote that the project will be finalized, but in general, raising taxes cannot be avoided.