The government is ready to increase military duty and VAT.

Because of the Muscovite invasion, the government must raise taxes in Ukraine.

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The Cabinet of Ministers is working on a bill to increase taxes: they want to increase the military tax from 1.5% to 5%, and VAT by 2-3%, Forbes reports.

The government explains such decisions by increasing funding for the state’s military needs. Finance Minister Sergei Marchenko estimated the budget gap due to military spending at $5 billion. or 200 billion UAH. At the same time, other interlocutors of the publication estimate the budget needs at UAH 400-500 billion.

The government plans to increase the military tax from 1.5% to 5%, three Rada deputies say. A similar tax rate of 5% could be introduced for individual entrepreneurs, according to two deputies from the financial and economic bloc, the publication writes.

There are still discussions about the level of VAT increase. The likely increase is 2-3%. However, the changes are not final; discussions on them are still ongoing, Forbes notes.

According to the publication’s calculations, an increase in the military tax rate from 1.5% to 5% for hired workers (without taking into account the possible introduction of a military tax for individual entrepreneurs) could bring the budget an additional 90-100 billion UAH per year.

Increasing the VAT rate by 1% will provide about UAH 40 billion in additional annual revenue. With an increase in VAT by 2-3%, budget revenues could increase by UAH 70-120 billion.

The corresponding bill may reach the Rada at the end of June – beginning of July. If the document is adopted quickly, the updated rates will not go into effect until September.

Source: Racurs

David

I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.