The Verkhovna Rada of Ukraine has just adopted an important bill related to tax increases and military fees. This decision will affect many Ukrainians, including sole proprietors, companies, and banks. Let’s explore what will change and why it is important.
What this law is about
Bill No. 11416d is a document that involves increasing tax and military fees. It was supported by 241 deputies on the second attempt. According to the plan, this will bring additional 58 billion hryvnias to the budget this year, and another 137 billion next year. The money will go towards financing the army and other important needs of the country.
Increase in military fee: what to know?
One of the main changes is the increase in the military fee. If previously Ukrainians paid 1.5% of their income, now this percentage will rise to 5% for individuals. And for sole proprietors of the 1st, 2nd, and 4th groups, the military fee will increase to 10%. This is a significant increase that will impact many entrepreneurs and employees.
New rules for sole proprietors and banks
The bill also affects companies engaged in retail fuel trade. They are now required to make advance payments monthly by the 10th of each month. This is aimed at improving budget revenues and making the financial system more stable.
As for banks, the corporate income tax rate will also increase for them. In 2024, it will rise to 50%. This significant increase may affect the banking sector and likely lead to changes in the financial policies of banking institutions.
How will this impact ordinary Ukrainians
This is a question that concerns many: how will these tax changes affect the average citizens? Firstly, the increase in the military fee will be felt by everyone receiving a salary or running a business. This increase will help support the army, but at the same time, it may create additional financial burden on people’s wallets.
Entrepreneurs will also return to mandatory payments of the ERUs (single social contribution) with a minimum monthly payment of 1760 hryvnias. This means a return to the pre-war tax system that was in place before the conflict.
Why This Is Important for the Budget
Tax increases and military fees are part of the government’s strategy to fill the budget. These funds are needed to support the army, economy, and ensure the country’s defense capability. In times of war, every hryvnia is important, so the government is taking these steps.
When the Bill Will Take Effect
Although the bill has not yet been finally adopted, its implementation is planned retroactively from October 1. This means that all changes may take effect from this date, even if the final vote takes place in mid-October.
What Zelensky Calls for
Interestingly, Ukrainian President Volodymyr Zelensky also addressed Ukrainians living abroad, asking them to support the country by paying taxes in Ukraine. He emphasized that this would help strengthen the country’s defense and economy.
Therefore, the tax situation in Ukraine is changing, and it affects each of us. The military fee is increasing, tax rules for individual entrepreneurs and banks are becoming stricter, but all of this is being done to support our country in difficult times. Therefore, we should be prepared for new financial challenges, but also understand that these steps are important for our collective victory.
