The relevant committee of the Verkhovna Rada has supported the draft law on tax increases (No. 11416-d) for the second reading. This was announced by Yaroslav Zheleznyak, First Deputy Chairman of the Verkhovna Rada Committee on Finance, Taxation and Customs Policy.
According to him, 19 MPs voted in favour, three abstained and one voted against. The draft law is to be considered in the session hall this month, and some of the provisions will come into force in October.
The draft law
- increases the military tax from 1.5% to 5%
- extends the military duty for individual entrepreneurs
- Provides for banks to pay 50% of this year's profit
- Increases the minimum tax rate for land
- provides for the payment of 25% of the profit by financial institutions
- introduces monthly PIT reporting (from January 2025) - previously it was said that this was necessary for ‘economic booking’
- increases rents for the extraction of crushed stone
- exempts cashback from taxation
Regarding the ‘economic booking’, Vitaliy Kindrativ, a representative of the Ministry of Economy, said that several options are being considered.
‘They said they were moving from the criticality of the enterprise to the criticality of the employee. Supposedly for a year, but with monthly salary confirmation,’ Zheleznyak said.
The decision on this option to avoid mobilisation will be made by the ‘political leadership’.