The Ministry of Finance proposes to raise taxes only for the period of martial law
The Ministry of Finance of Ukraine continues an open and constructive dialogue with representatives of business associations from various sectors of the economy on the design of tax changes for the period of martial law.
Deputy Minister of Finance Svitlana Vorobey discussed with representatives of the Ukrainian Oil and Gas Association and PJSC Ukrnafta government proposals for the state budget revenues from taxes as well as additional sources for financing the needs of the security and defense sector. The parties agreed that additional calculations should be made to determine the amount of the advance payment of the corporate income tax for taxpayers engaged in fuel retailing.
Last week, the Minister met with representatives of the Ukrainian Business Council, the All-Ukrainian Agrarian Council, the Ukrainian Agribusiness Club, the American Chamber of Commerce in Ukraine, the European Business Association, the NGO "Jewelers of Ukraine" and the Union of Jewelers of Ukraine.
Svitlana Vorobey emphasized that military expenditures are covered exclusively by domestic revenues and borrowings. All possibilities to quickly meet the additional needs of the military state budget without revising taxes have been exhausted. Therefore, the Ministry of Finance has proposed a number of measures to meet the additional needs of the Defense Forces in the amount of UAH 500 billion. Three quarters of this amount is proposed to be covered by measures that do not involve tax increases. And only one quarter is to be covered by revising the military fee, excise and other tax rates, which should bring in UAH 138.7 billion to the state budget by the end of 2024 and UAH 340 billion in 2025.
The discussions were held with the participation of representatives of the Parliamentary Committee on Finance, Taxation and Customs Policy. Among other things, they discussed the possibility of replacing the 1% turnover tax for business with VAT and emphasized that all the adopted tax changes will be effective only for the period of martial law.
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