In 2023, the general fund of local budgets received 441.9 billion hryvnias, which is 43.8 billion more than in 2022. The main income came from personal income tax (PIT).
This was reported by the Ministry of Finance.
The main revenues of local budgets (excluding interbudgetary transfers) in 2023 were:
- 289.4 billion hryvnias — personal income tax (PIT);
- 55.8 billion hryvnias — single tax;
- 34.5 billion hryvnias — payment for land;
- 22.4 billion hryvnias — excise tax;
- 14.5 billion hryvnias — income tax for enterprises of the private sector of the economy;
- 9.1 billion hryvnias — real estate tax.
The largest increase in income was recorded in the Kyiv region (+26%), in the Cherkasy region (+20.8%), the Trancarpathian region (+17.5%) and the Rivne region (+16.2%), as well as in the city of Kyiv (+17.6 %). The increase in income in these areas is associated with the relocation of internally displaced persons and businesses from territories where hostilities are ongoing or were being fought, or from territories that were or are temporarily occupied by the Russian Federation.
At the same time, the lowest income indicator is in the regions where active hostilities are taking place or whose territories were or are temporarily occupied, in particular in the Donetsk, Zaporizhzhia, Luhansk and Kherson regions.
The Ministry of Finance noted that in 2023, the revenues of local budgets were increased by 11% compared to 2022.
The main points about the "military personal income tax"
In the first seven months of 2022, the maintenance of military personnel was the largest item of expenditure — 520 billion hryvnias, or a third of all state expenditures since the beginning of the year. Since the military also pays taxes on the income received, in particular personal income tax, the corresponding charges have increased very sharply and in a large amount.
During the war, the "military personal income tax" became an important source of filling local budgets — the incomes of communities increased eightfold. "Super incomes" were received by those communities on the territory of which military units or training centers are registered. That is, different communities can have radically different incomes, and not all of them "rationally" arrange a large income.
On November 17, 2023, President Volodymyr Zelensky signed the law on the redirection of the "military personal income tax". Therefore, the state budget will receive 214.7 billion hryvnias for military expenses from the redirection of personal income tax.
From October 1 to December 31, 2023, the "military personal income tax" was directed to the state budget in a ratio of 50% to 50%: State Special Communications for drones (13 billion) and the Ministry of Defense for the purchase of artillery systems (13 billion).
From January 1 to December 31 of the year in which martial law will be suspended or abolished, the "military personal income tax" will be distributed as follows: 45% — State Special Communications for drones (forecast of 43+ billion hryvnias); 45% — to the Ministry of Strategic Industries of Ukraine for the production of ammunition and weapons (43+ billion), 10% — to military units in the field (approximately 10 billion).