The government asks Zelensky to quickly sign laws on tax increases and the state budget

The Cabinet of Ministers of Ukraine asked President Volodymyr Zelensky to speed up the signing of laws on tax increases and the state budget for 2025.

This was reported by the Prime Minister Denys Shmyhal during a telethon.

According to him, the president should sign both documents in the coming days. Itʼs about draft law No. 11416-d, which was approved by the Verkhovna Rada on October 10, and draft law No. 12000, which MPs supported as a whole on November 19. The government predicts that the tax law will come into effect on December 1. That is, it will not enter into force "retroactively".

These laws are one of the main demands of Ukraineʼs creditors, in particular the International Monetary Fund, and they are also important in order to continue paying salaries to the military, buying weapons and ammunition.

UPD. In an evening video message, Zelensky said that he held a meeting with Prime Minister Denys Shmyhal, Minister of Finance of Ukraine Marchenko, and representatives of the Verkhovna Rada. They agreed that the president will sign the law on the state budget for 2025 already on November 28.

Taxes

Here is a brief overview of what the law provides:

• military levy for private enterpreneurs of the I, II and IV groups at the level of 10% of the amount of the minimum salary established on the 1st of the reporting month. From October 2024, it is 800 hryvnias per month;
• private enterpreneurs of the III group will pay taxes in the amount of 1% of income in the form of a military levy;
• for military personnel, the military levy will remain at the level of 1.5%;
• 50% tax on bank profits;
• 25% income tax for all financial companies except insurance companies. Previously, the tax rate for them was 18%;
• exemption of "national cashback" from taxation in 2024-2025;
• monthly reporting on personal income tax, military duty and EUV will begin on January 1, 2025. This is required to implement economy booking;

It is expected that such tax changes should bring 58 billion hryvnias to the state budget in 2024, and 137 billion hryvnias in 2025. This is necessary in order to close the "hole in the budget" and to finance the Ukrainian army at the required level.

State budget

The law envisages record expenditures at the level of 3.94 trillion hryvnias. Of these, defense expenditures amount to 2.22 trillion hryvnias. Income is forecast at the level of 2.3 trillion hryvnias. This included, in particular, 141 billion hryvnias from the draft tax law. External financing is also expected to reach $38.4 billion next year.

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