Military Levy Will Increase Threefold: What Else Awaits Ukrainians After the Adoption of the New Tax Law.

The Verkhovna Rada is preparing to consider a revised bill aimed at increasing tax revenues to the state budget.

Oleksiy Leonov, a Member of Parliament from the "Servant of the People" faction and head of the subcommittee on VAT taxation, spoke about the key provisions of the document.

According to Leonov, raising taxes is a difficult but necessary step given the current situation in the country. He emphasized that this is a temporary measure that will be in effect until the end of the year in which martial law is lifted.

The VR Committee on Finance, Tax, and Customs Policy recommended adopting the bill in the second reading after discussion. The main provisions of the document include:

• Increase of the military levy from personal income from 1.5% to 5%.
• Introduction of a monthly military levy for sole proprietors on a simplified tax system in groups 1, 2, and 4 at 10% of the minimum wage.
• Setting the military levy rate at 1% of income for single tax payers in the third group.
• Introduction of a profit tax for the financial sector: 50% for banks for 2024 and 25% for non-bank financial institutions from 2025 onwards.

The bill also provides for the introduction of monthly reporting on personal income tax to implement the economic reservation mechanism and exemption from taxation of income received within the "Made in Ukraine" program.

Leonov emphasized the need to adopt the bill to finance the security and defense sector. At the same Time, he proposed examining opportunities to compensate for the additional burden on Ukrainian entrepreneurs. In particular, the Committee proposes increasing funding for the affordable loans program "5-7-9%" by 2 billion hryvnias and allocating an additional 422.3 million hryvnias to the state grant program for creating or developing businesses in the budget for the next year.