The Verkhovna Rada approved a law that directs the personal income tax (PIT) from the salaries of the military to the state budget instead of local budgets for further allocation to military needs. This was announced by Yaroslav Zhelezniak, Member of Parliament from the Holos faction, in his Telegram channel, Ukrainian News Agency reports.
"Parliament approved bill 10037 (as a whole) on the military personal income tax and road excise in the repeated second reading. There were 253 votes in favor," he wrote.
According to the MP, the price of the issue in this year and next year for the general budget from bill 10037 is UAH 214.7 billion for military expenses.
From October 1 to December 31, 2023, the "military personal income tax" is directed to the state budget in the proportion of 50% to 50%: the State Service for Special Communications and Information Protection for drones (UAH 13 billion) and the Ministry of Defense for the purchase of artillery systems (UAH 13 billion).
From January 1 to December 31 of the year in which martial law was suspended or abolished, "military personal income tax" is distributed in the following proportions:
45% - the State Service for Special Communications and Information Protection for drones (forecast of UAH 43+ billion);
45% - Ministry of Strategic Industry for deployment of ammunition and weapons production (UAH 43+ billion);
10% - to managers of the security and defense sector for automatic distribution among military units in proportion to the paid personal income tax (about UAH 10 billion).
The law also provides that the revenues of the Road Fund (excise tax except for the local part of 13.44%) in 2024 are directed to the general fund of the state budget (currently included in the special fund) and are directed to defense needs. 13.44% of the excise tax on produced and imported fuel will remain in local budgets.
The head of the budget committee of the Verkhovna Rada, Roksolana Pidlasa, reported on Facebook regarding the adoption of this law that the "ordinary personal income tax" remains in communities in the amount of 64% (at the same time, at least 4% of the tax must be directed to calculations for the production of thermal energy, and also for the support of enterprises for production, supply of thermal energy, as well as centralized supply of cold water and drainage).
Prime Minister Denys Shmyhal also reported on the Telegram channel that the Verkhovna Rada supported the government's initiative to direct the military personal income tax to the purchase of drones, as well as to the development of its own production of weapons and equipment.
According to Shmyhal, this will allow additional UAH 96 billion to be allocated to these needs in 2024, 45% of this amount will go to unmanned aerial vehicles and naval drones, another 45% to the development of the Ukrainian defense and industrial complex, 10% will be automatically distributed among the military units in accordance with the paid personal income tax.
Shmyhal assured that the government will continue to help the regions. According to him, local budgets in 2024 will receive more from personal income tax than they received in 2021, an additional UAH 62 billion will be directed to the regions compared to 2021, this will allow communities to cover all necessary and priority needs.
As Ukrainian News Agency earlier reported, the Cabinet of Ministers proposed to the Verkhovna Rada to direct the personal income tax of the military to the state budget for the purchase of drones and ammunition instead of local ones from October 2023 to 2025.
Oksana Prodan, the adviser to the head of the Association of Cities of Ukraine, said that in the event of the adoption of bill 10037 on the withdrawal of the "military personal income tax" from local budgets, communities will be deprived of the resources to fulfill the tasks assigned to them by the legislation.
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