MP Hetmantsev Initiates Unification Of Unified Social Tax, Personal Income Tax And Military Tax With Gradual Decrease In Effective Rate To 25%

Member of Parliament from the Servant of the People faction, chairperson of the parliamentary committee on finance, tax and customs policy Danylo Hetmantsev initiates the unification of a unified social tax (UST), personal income tax (PIT) and military tax into a single tax with a gradual decrease in effective rate to 25%.

He announced this in an interview with Ukrainian News Agency.

"There is a bill that I have developed. I wanted to register it before the New Year, but the discussion with our entire team dragged on a little. I do not want to submit a bill that will be stillborn. I would like us to consolidate," said the MP.

According to Hetmantsev, the main idea is to combine the UST, personal income tax and military tax into a single tax with a decrease in the effective rate.

"Now we have an effective rate of 37%, nominal - 42%. We propose to reduce it to 30% with a subsequent decrease by 1% annually to 25%. We propose to expand the ability to declare, namely to introduce family declaration. Simply put, so that the family can declare. We want to stimulate the declaration by increasing tax deductions. That is, we give the person who submits the declaration the opportunity to use a large amount of deductions of taxable income," he added.

For example, if a person supports a pensioner over 80, then he has the right to reduce his taxable income by a certain amount.

“If you rent a residential space, you have the right to reduce your taxable income by a certain amount. And thus stimulate people to file returns and teach them how to lead their financial life. And we propose to introduce a tax on withdrawn capital according to the Polish model - up to UAH 200 million in turnover. If your income is up to UAH 200 million throughout the year, then you can optionally use the tax on withdrawn capital," Hetmantsev said.

As Ukrainian News Agency earlier reported, in August 2021, Danylo Hetmantsev allowed a reduction in the tax burden on the payroll fund from 2023.