The Ministry of Finance is considering new taxation options to fill the budget
The Ministry of Finance continues to discuss with business the government's proposals which will help to generate sources to finance additional needs of the defense and security sector.
This week, meetings were held with representatives of the Federation of Employers of Ukraine, the Ukrainian Chamber of Commerce and Industry, the Union of Ukrainian Entrepreneurs, the automotive industry and mobile operators with the participation of representatives of the Parliamentary Committee on Finance, Taxation and Customs Policy.
Representatives of associations from various sectors of the economy understand the importance and necessity of promptly finding resources to meet the additional needs of the security and defense sector. The technical details of finding the optimal design of tax changes are currently being discussed, taking into account the position of various industries.
In particular, during the meeting with representatives of the automotive industry, the issue of administering the domestic car market was raised.
"We are talking about the taxation of new and used imported cars and exemptions for the secondary market. Buying a new imported car in wartime is not a basic need. If you need transportation, you can buy a used car on the secondary market. That is why, by imposing the military duty on new imported cars, we can ensure the military budget and stimulate the domestic market for the production and repair of cars," said Deputy Minister of Finance Svitlana Vorobey.
Military expenditures are covered exclusively by domestic revenues and borrowings. All possibilities to quickly meet the additional needs of the military 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 in 2024. 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 provided by revising the military fee, excise and other tax rates, which should ensure revenues to the state budget in the amount of UAH 138.7 billion by the end of 2024 and UAH 340 billion in 2025.
We would also like to remind you that all the changes proposed in the government's version of the draft Law "On Amendments to the Tax Code of Ukraine and Other Laws of Ukraine on Peculiarities of Taxation during the Period of Martial Law" will be canceled after the termination of martial law.
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