Increase of military duty and excise tax: proposals of the Cabinet of Ministers

MP Nina Yuzhanina points out that the government intends to raise additional revenues to the budget in 2024 by:

► increasing the military fee (will apply to legal entities - corporate income tax payers and single tax payers of the third and fourth groups, as well as individual entrepreneurs - single tax payers of the first, second, third and fourth groups) mainly by 0.1% to 1.5%.

In addition, the additional military duty will apply to:

♦ buyers of precious metals from banks and cars subject to the first state registration in Ukraine

♦ sellers of real estate

♦ retailers of gold, platinum and precious stones jewelry

♦ mobile operators providing any mobile communication services.

This is similar to the objects of taxation of the mandatory state pension insurance fee.

The following are the following:

► increase in excise tax rates;

► introduction of monthly advance payments of income tax by companies engaged in fuel retailing.

"The proposals also provide for bringing the excise tax on fuel in line with the minimum EU standards, introducing an excise tax on water, including mineral and carbonated water, with the addition of sugar or other sweetening or flavoring substances, and expanding the list of excisable goods by imposing an excise tax on hemp plants," the MP said.

These measures should provide additional revenues this year of at least 0.5% of GDP, or UAH 44.2 billion.

"And here I stumbled, because if we bring ONLY the excise tax rates on tobacco products in line with the Association Agreement with the EU (to gradually bring them to 90 euros per 1000 pieces by 2025), this will be an additional 32 billion UAH.

As for bringing, for example, the excise tax rate on diesel to the minimum European one, this will add almost 10 hryvnias to its cost, which is an instant increase in prices for absolutely all goods and services ," the MP emphasizes.

"Is the government considering this?

The EU countries that became new members defended the position of a five- to seven-year period to gradually increase fuel excise taxes to the minimum in the EU.

How does the Ministry of Finance/government calculate?

What will it propose again in order to "pinch" a less aggressive goose?" asks N. Yuzhanina.