VR endorses draft bill on raising taxes on second attempt

The Verkhovna Rada of Ukraine has endorsed in the first reading draft bill No. 11416-d on raising taxes, which is expected to generate an additional UAH 58 billion for the state budget in 2024 and UAH 137 billion in 2025.

The relevant statement was made by Member of Parliament Yaroslav Zhelezniak (from the parliamentary faction ‘Holos’) on Telegram, an Ukrinform correspondent reports.

A total of 241 Members of Parliament voted in favor of such decision.

In particular, the document provides for raising the military tax from 1.5% to 5%; increasing taxes for individual entrepreneurs of Group 1 and Group 2; advance payments by filling stations; introducing a 1% tax for all individual entrepreneurs of Group 3; charging a 25% tax on the income of financial institutions; monthly reporting for individual income tax payments (for economic reservation purposes); and charging a 50% income tax from banks in 2024.

According to Zhelezniak, amendments are being submitted at the moment, and the draft bill is expected to pass the second reading somewhere in mid-October 2024.

A reminder that, on September 3, 2024, the Ukrainian Parliament failed to endorse in the first reading draft bill No. 11416-d on increasing tax revenues by UAH 30 billion. The document was sent for a repeated first reading.

On September 16, 2024, the Verkhovna Rada Committee on Finance, Taxation and Customs Policy recommended the Government’s revised draft bill on raising taxes for the repeated first reading.