Innovations of Tax Legislation

On July 18, the Cabinet of Ministers approved changes to the 2024 state budget, which is to be executed in the form of a draft law, which the Verkhovna Rada will vote on.

It is proposed to increase the military tax rate for individuals from 1.5% to 5%. A military levy is to be introduced in the amount of 1% of income for legal entities on the general and simplified taxation system. For individual entrepreneurs of the first, second and fourth groups, the military levy will be 5% of the two minimum salaries per month, and for individual traders of the third group – 1% of income.

In addition, the government wants to introduce the military fee for certain operations: the purchase of bank metals – 5% of the value, the sale of one real estate object – 5% of the income, the first registration of a passenger car – 15% of the cost of the car. According to the draft law, enterprises, institutions, organizations and non-governmental organizations selling jewelry will have to pay a military tax in the amount of 30% of the value of the sold products.

In addition, the Cabinet of Ministers proposes to establish a monthly advance payment from the income tax of companies that sell fuel – half of the minimum fee for each cubic meter of tanks for storing gasoline and diesel. The parliament has already passed the law on the increase in excise duty on fuel in the second reading, the increase in excise duty on cigarettes has so far been approved in the first reading, and the draft law on excise duty on sweet drinks has already been approved by the specialized committee. In this way, it is planned to cover part of the financing of military expenses.

Volodymyr Harkusha

Director of Audit Firm “Kyiv Audit Service”