The military tax has been raised to 5%. However, it does not apply to one category of citizens.
The Verkhovna Rada voted in the second reading for bill No. 11416d. The historic increase in taxes was supported by 247 deputies of the Verkhovna Rada.
However, not all of the changes provided for by the bill were adopted by the deputies. In particular, the military tax for the military was left at 1.5% (the tax rate was going to be increased from 1.5% to 5%).
“The increase in the fee will not be only for the military! For others, they have extended the increase in the military fee to 5%,” added People's Deputy from “European Solidarity” Oleksiy Goncharenko.
Later, People's Deputy Yaroslav Zheleznyak noted that the amendment No. 988, which was “shot down” during consideration, is a problem. Since it is actually half of the law.
“It is physically laid out on 10 A4 pages. Therefore, it seems to me that the law will have to be re-voted simply to bring it into some kind of order… In short, I think there are now many legal problems with the text,” the deputy added.
Due to the fact that amendment No. 988 was not voted for:
- military tax for sole proprietors I, II and III will be in effect from October 1
- there are no postponements of military tax until January 1 for anyone
- those working in the “Diya.City” mode are also subject to military tax
- exceptions for sole proprietors in the occupied territories and in the combat zone
- new military tax for sole proprietors in the Ministry of Taxes and Duties will not be included
What is provided by law
- increase in military tax on salaries of all individuals from 1.5% to 5%
- increase from January 1 in military tax from 1.5% to 5% on other income of citizens
- Individual entrepreneurs of the 1st, 2nd and 4th groups will pay a military tax in the amount of 10% of the minimum wage established on the 1st day of the reporting month (from October 2024, this is UAH 800 per month), and individual entrepreneurs of the 3rd group will pay 1% of their income in the form of a military tax
- introduction of a minimum land tax (MLT) in the amount of UAH 700 and UAH 1,400 per hectare
- in 2024-2025, income from the “national cashback” will not be taxed
Monthly reporting on personal income tax, military tax and unified social contribution will begin on January 1, 2025. This is necessary for the further implementation of “economic reservation”.
It is expected that such tax changes should bring 58 billion hryvnias to the state budget in 2024, and 137 billion in 2025. This is necessary to close the “budget hole” and finance the Ukrainian army at the required level.
A number of businessmen sharply criticized the project on raising taxes. Getmantsev wrote at the end of July that the project has not yet been finalized, but in general, raising taxes cannot be avoided. Experts do not rule out that raising taxes will lead to a decrease in the number of jobs, an increase in the shadow economy and the closure of businesses in general.
However, government representatives hold a different opinion. In particular, according to the head of the budget committee of the Verkhovna Rada Roksolana Podlasa, if the Rada does not decide to raise taxes, the military risks being left without salaries.
Calls to look at other sources of financing the state budget are also coming from abroad. In particular, the American Chamber of Commerce in Ukraine previously criticized the government's tax plans, calling on the government and law enforcement agencies to step up the fight against the shadow economy to ensure budget revenues and fair competition.