At its meeting on October 14, the Verkhovna Rada rejected all 13 resolutions that tried to block draft law No. 11416-d on raising taxes, which was adopted on October 10.
The MP Yaroslav Zheleznyak reported this.
Further, the document must be signed by Verkhovna Rada Speaker Ruslan Stefanchuk and President Volodymyr Zelensky. Zheleznyak believes that this will happen in the coming days.
The law enters into force on the day following its publication.
What the law provides
The main provisions of the law:
- an increase in the military tax from 1.5% to 5% for all citizens, including residents of “Diia.City”, except for military personnel;
- implementation of the military levy for private entrepreneurs of the I, II and IV groups at the level of 10% of the minimum salary, established on the 1st of the reporting month. From October 2024, it is UAH 800 per month;
- private entrepreneurs of the III group will pay taxes in the amount of 1% of income in the form of a military levy;
- 50% tax on bank profits;
- increase of the minimum tax liability for land (MTL) in the amount of UAH 700 and UAH 1 400 per hectare. In the latter case, it refers to situations where the share of arable land in the land area is not less than 50%;
- 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;
- Gas stations, depending on the type, will pay different monthly income tax advance payments (this is about 30, 40, 45, 60 or 80 thousand hryvnias for each);
- currency exchange offices will pay an advance payment of income tax. The amount will depend on the population in the city. In Kyiv, it will be €700 (in the hryvnia equivalent, but linked to the euro exchange rate), in cities with a population of more than 50 000 people — €600, in all other settlements — €200.
It is expected that such tax changes should bring UAH 58 billion to the state budget in 2024, and UAH 137 billion in 2025. This is necessary in order to close the "hole in the budget" and to finance the Ukrainian army at the required level.
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