The mandatory purchase of bonds could become an additional source of funding for the security and defense sector.
Despite the fact that Ukraine already has a military tax, MP Danylo Getmantsev, who heads the parliamentary committee on finance, tax and customs policy, proposes to additionally introduce mandatory purchase of government bonds for all Ukrainians.
He suggested discussing this idea in his message on the Telegram channel.
According to the MP, mandatory purchase of bonds could become an additional source of funding for the security and defense sector amid the ongoing war.
He noted that the acquisition of military personnel is currently an attractive investment of savings for the population, since the average weighted yield of hryvnia government bonds issued in October was 15.6%.
“This exceeds the projected devaluation and inflation. For the population, investment attractiveness is even greater given the absence of taxation of investment income by personal income tax and military tax (unlike deposits),” Getmantsev explained.
However, in his opinion, market incentives alone for mobilizing domestic savings for the needs of security and defense forces may not be enough.
At the same time, Getmantsev cited the example of Israel, which in the 1970s introduced a mandatory war loan, where 7% of citizens' income was directed toward purchasing war bonds.
“Whether a similar mandatory savings scheme could be introduced in Ukraine (exclusively for wartime and exclusively for financing the security and defense forces) is a matter of deep political, public and professional discussion. Yes, we already have a military levy (by the way, a similar military levy, war levy, was also in Israel). However, of course, these are different instruments for financing military efforts, the only thing they have in common is mandatory participation in paying taxes or purchasing bonds,” the MP noted.
According to Getmantsev, the Ministry of Finance and the NBU can develop individual plans for such mandatory participation, and the initiative should only apply to wartime.
We remind you that in a few months, utility rates in Ukraine may increase significantly. In particular, for heating and water supply.
