The VRU passed a «historic» tax increase (military tax for private entrepreneurs, 5% for citizens)… but «lost» half of the text

The Verkhovna Rada of Ukraine (VRU) has generally supported the draft law No. 11416-d on a «historic» tax increase for Ukrainians. «247 MPs voted in favor of the bill, taking into account the latest amendments to the military tax — it will increase to 5% for most Ukrainians.

For in words Yaroslav Zheleznyak, First Deputy Head of the Verkhovna Rada Committee on Taxation and Customs Policy, some changes were made to the draft law during the consideration of the bill. Thus, the MPs made an exception for military personnel and decided to leave the military tax at the same level of 1.5%.

Tax changes in the draft law No. 11416-d:

• Increasing the military tax from 1.5% to 5% (except for the military);
• introduction of a military fee for individual entrepreneurs (1% of income for group 3 entrepreneurs, at 10% of the minimum wage for group 1, 2 and 4 entrepreneurs);
• 50% income tax for banks in 2024;
• Increasing the minimum tax liability for land;
• 25% income tax for financial companies;
• exemption of cashback from taxation;
• monthly submission of personal income tax reports;
• increase in rent for crushed stone extraction.

At the same time, during the consideration of draft law No. 11416-d in the session hall, amendment No. 988 did not receive the required number of votes, although it was taken into account by the Committee. This amendment takes up 10 sheets of text on A4 pages and makes up «half of the law». Therefore, Yaroslav Zheleznyak suggeststhat «will have to re-vote the law to bring it into some kind of order».

At the same time, it is worth noting that the Main Legal Department of the Verkhovna Rada recognized some provisions of the draft law No. 11416-d on tax increases as inconsistent with the Constitution of Ukraine.