The Cabinet of Ministers adopted a resolution that slightly reduced the maximum number of employees of the State Tax Service, while at the same time doubling the salaries of its employees. The government made this decision on July 18, the text of the corresponding resolution is at the disposal of the ED.
►Subscribe to the Ministry of Finance page on Facebook: main financial news
What is known
The decision to revise the organizational structure of the State Tax Service was made as part of the implementation of the National Revenue Strategy. In particular, this strategy states that the reform of the tax service should precede an increase in the tax burden on businesses and citizens.
By its decision, the government decided to reduce the maximum number of territorial bodies of the State Tax Service by 3,291 staff units. The number of tax central apparatus will be increased by 206 units (the “net” reduction is 3,085 staff units).
According to the Ministry of Finance, as of January 1, 2024, the maximum number of employees of the State Tax Service was 24.8 thousand people, while at the same time 20.6 thousand people actually worked there. 4,191 positions in the service were vacant. So, in fact, the government’s decision concerns primarily the reduction of vacant positions in the State Tax Service.
Read: The Cabinet of Ministers proposes to increase budget expenditures by more than 500 billion hryvnia
The second part of the government's decision concerns the revision of the salaries of tax officials. They were doubled.
So, in particular, the salary of the head of the State Tax Service increased from 15.9 subsistence minimum (a special subsistence minimum is used, which is 2102 UAH) to 31.8 subsistence minimum. In hryvnias the increase is from UAH 33,422 to UAH 66,843.
The salary of the first deputy head of the State Tax Service increased from UAH 31,740 to UAH 63,480; salary of the department director – from 19,759 UAH to 39,517 UAH; salary of the deputy director of the department – from 15,765 UAH to 31,530 UAH; salary of the head of the department (as part of the department) – from 14,924 UAH to 29,848 UAH; the salary of the chief state inspector is from 10,300 UAH to 20,600 UAH.
Note that the salary is only part of the salary of civil servants. Apart from this, the salary structure includes various bonuses (in particular, for experience or length of service) and other payments.
Read: Military duty and excise tax on sweet drinks : The Cabinet of Ministers has decided which taxes to raise
In general, funding of organizational changes in the tax service during 2024 will require funding in the amount of UAH 1.338 billion (including 1.111 billion for wages). These expenses are planned to be financed by redistributing budget expenses. In particular, by reducing by a corresponding amount the costs of the program “Ensuring the institutional capacity of public authorities.”
Also on July 18, the government agreed on a bill that proposes to significantly increase taxes and make changes to their administration. In particular, it is proposed to involve tax authorities in taking inventory of the enterprise, and if the entrepreneur refuses this, to seize his property.
The government also proposes to increase the military tax rate for individuals from 1.5% to 5 %, and also introduce such a fee for the income of legal entities (1% of income) and individual entrepreneurs (1% of income for group 3 and UAH 800 for the first, second and fourth groups).
- Budget
