Rada unblocks tax increase

The Verkhovna Rada unblocked the signing of the law on tax increases.

Member of Parliament from the Holos faction, Yaroslav Zhelezniak, announced this in his Telegram channel, Ukrainian News Agency reports.

"Parliament rejected all 13 blocking resolutions on the tax law. Accordingly, bill 11416-d will first be signed by the Speaker, and then by the President. I think it will be in the coming days. The law will enter into force the day after its publication, so it is at least tomorrow and the day after tomorrow," he wrote.

MPs did not support any of the resolutions that proposed to cancel the decision of the parliament of October 10 to raise taxes.

After the relevant draft resolutions have been considered at the Verkhovna Rada meeting and "failed" in the vote, the Speaker of the Parliament can sign the approved bill and submit it to the President for signature.

As Ukrainian News Agency earlier reported, the tax increase approved by the Verkhovna Rada will increase the income of the state budget in 2024 by UAH 30 billion.

The main legal directorate of the Verkhovna Rada analyzed the bill on raising taxes No. 11416-d and came to the conclusion that its individual norms do not correspond to the Constitution of Ukraine.

It will be recalled that the bill adopted in the second reading provides for:

1) increase in military fee (MF) for the period until December 31 of the year in which martial law will be terminated, namely:

- rate increase from 1.5% to 5%;

- at the same time, the military fee for the military remains at the level of 1.5%;

- establishment of MF in the amount of 1% of the income of taxpayers of the single tax of the III group;

- establishment of MF for individuals-entrepreneurs - payers of the single tax of the I, II and IV groups at the level of 10% of the amount of the minimum salary;

2) setting the income tax rate for banks for 2024 at 50%;

3) setting the income tax rate for non-bank financial institutions (except insurers) at the level of 25%;

4) improvement of the proposed model for determining the amount of advance payments from corporate income tax for gas stations;

5) changing the tax period from quarterly to monthly for submitting reports on income paid to individuals (for economic reservation);

6) instructing the Cabinet of Ministers to develop a bill on amendments to the Budget Code of Ukraine regarding the inclusion of military fees in the special fund of the State Budget in order to direct them to the needs of financial support of the security and defense sector.

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