Tax increase from October 1: further amendments to the draft law

Today, a meeting of the working group on the draft law No. 11416d, which will introduce a number of amendments to the Tax Code, was held.

As reported earlier by Y . Zheleznyak, the revised draft law No. 11416d envisages the following

- increase of the military duty rate from 1.5% to 5%;

- establishment of the military tax for sole proprietors of the first and second groups in the amount of 10% of the minimum wage;

- establishing a CPT of 1% of income for the third group of the single tax;

- Establishment of monthly advance payments for gas stations (but the wording is changed here);

- setting the corporate income tax rate for banks at 50% for 2024;

- increasing the corporate income tax rate for financial companies to 25%;

- monthly reporting on personal income tax.

Danylo Hetmantsev, Chairman of the Tax Committee, said that the following clarifications were made based on the results of the working group on this draft law

- the increase in the CPT is limited to the tax period in which martial law is lifted;

- The ECT will be directed through a special fund exclusively to finance the Armed Forces;

- the tax on excess profits of banks was removed (categorical position of the Ministry of Finance and the NBU);

- the advance payment from gas stations was somewhat clarified;

- increase in the corporate income tax rate for financial institutions for the future, not for 2024 as proposed;

- the 1% military tax for legal entities on the third group single tax was removed.

All changes have been approved by the Ministry of Finance. Hetmantsev noted that the planned resource of UAH 125 billion eventually melted down to UAH 30.1 billion.

MP Yaroslav Zheleznyak announced that a meeting of the Tax Committee of the Verkhovna Rada is scheduled for tomorrow, August 29, to consider this draft law.

Accordingly, it is planned that the Parliament will consider it in the first reading on September 03-05.

"You won't believe it, but the same committee will also consider the government's draft law No. 11400 on cashback) It's just genius to throw billions down the drain on populism and raise taxes in one committee," Zheleznyak writes.