The Ministry of Finance admitted that the confiscation of “military” personal income tax from communities was an ineffective solution.
This was stated by the Association of Ukrainian Cities.
The “military” tax on personal income was removed from community budgets in 2023, along with the “power” personal income tax.
However, from January to July of this year, the main administrators of budget funds used only 45% of the actual income tax receipts, according to data from the Ministry of Finance, provided by the Ministry at the request of the ASU.
In total, in 2024, expenses amounted to UAH 32 billion with UAH 77.3 billion in revenues. Moreover, if military units systematically use the funds, then the Ministry of Strategic Industry during this period was able to use “as much as” UAH 529 million – 2% – from the UAH 25 billion allocated to it, seized from communities to provide military units, the Association notes.
In addition, in 2023, 65% of the funds seized from communities were used.
And if the Ministry of Defense used 100% of the funds, then the State Special Communications Service used 0 hryvnia.
The Association recalled that communities also have the right to funds, and their expenses and support for the military during the war have increased significantly.
War is not a reason to confiscate funds, but an incentive to pool them.
The personal income tax of all citizens of Ukraine, regardless of their place of work or service, must be equally distributed to the budgets of communities for the operational response to the needs of the military, as determined by law, the ASU added.
Source: Racurs
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