The Committee of the Verkhovna Rada supported the updated project on raising taxes. What has changed?

The Committee on Finance of the Verkhovna Rada supported the updated version of draft law No. 11416-d on raising taxes and recommended that the parliament adopt it in the first reading.

This was reported by the committee chairman, the MP from "Servant of the People" Danylo Hetmantsev and deputy chairman of the committee, the MP from "Voice" Yaroslav Zheleznyak.

The revised draft law provides for:

• increasing the military tax rate from 1.5 to 5%;
• establishment of a military levy in the amount of 1% of income for private enterpreneurs — taxpayers of the uniform tax of the III group;
• establishment of a military levy for private enterpreneurs — payers of the uniform tax of groups I, II and IV at the level of 10% of the minimum salary.

The document specifies that the established features of taxation by the military levy will be in effect until December 31 of the year in which martial law will be terminated.

The project also proposes to set corporate income tax rates for non-bank financial institutions (except insurers) at 25%.

The project left monthly advance payments from income tax for fuel retail.

In addition, the project provides for the monthly submission of personal income tax returns — this is necessary for economic booking.

Zheleznyak separately emphasized that there was a difficult discussion in the committee regarding the removal of the rule on the 50% tax on excess profits of banks. The MPs supported it, but the National Bank of Ukraine, the Ministry of Finance, and the International Monetary Fund opposed it. As a result, the deputies agreed to return to this in the second reading.

In general, it is expected that the adoption of this draft law will bring 30 billion hryvnias to the budget this year and 126 billion hryvnias in 2025.

• On July 18, the Cabinet of Ministers approved two draft laws: the first — on changes to the Tax Code to finance additional military expenditures, the second — 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. Hetmantsev wrote at the end of July that the project will be finalized, but in general, tax increases cannot be avoided.