Draft Laws No. 11331 «On Industrial Policy and Predictability of the Real Sector of the Economy» and No. 11332 «On Amendments to the Tax Code of Ukraine Regarding Peculiarities of Payment of Military Duty for Reservations of Persons Liable for Military Service» were registered in the Verkhovna Rada.
Although the text of both draft laws is not yet available on the Rada’s website, we already know something about them, What changes are proposed by MPs
According to one of the main initiators of the bill, Dmytro Natalukha, the bill No. 11331 refers to the same UAH 20 thousand that a company must pay to book an employee.
- Every business entity that pays the increased military fee of UAH 20,000 per month per employee — has the option to book it.
- The increased fee is paid not by the employee, but by the business itself. It determines who is most critical to it and confirms this with appropriate taxes.
- Reservations apply to every business entity, which eliminates the problem, for example, with the impossibility of booking for representative offices of international companies or individual entrepreneurs. The latter can make a reservation if they can confirm that they have actually been operating for the past year.
- The percentage limit of reservations and the procedure will be determined by the Cabinet of Ministers. The mechanics of paying the increased military fee are outlined in the related draft law No. 11332 «on the peculiarities of paying the military fee for reservations for persons liable for military service».
«In times of war, the economy — is a weapon.We can only fight for our freedom as long as we have the resources to do so. This is a very simple formula voiced by President Zelensky: «either work or fight»,” Natalukha wrote.
Alternatives
However, we should expect alternative draft laws to appear:
- a model with reservations at a salary level of more than UAH 35 thousand;
- a mixed model — UAH 35 thousand of salary for an employee, UAH 20 thousand of military tax for a sole proprietor.
It is worth noting that politicians and officials have repeatedly proposed «economic reservation» conscripts.
For example, offered an alternative to booking and economic booking— labor conscription of business and IT.
Also there was information about two possible models of economic mobilization.
- The first model — the amount of taxes on the salary of a person liable for military service should be 35 thousand hryvnias, which is enough to support one soldier.
- The second model is a quota per enterprise for persons liable for military service.
Prior to that, the Council also considered
eventually refused from the idea of automatic booking of persons liable for military service who receive a salary of UAH 35 thousand and pay taxes.