The Verkhovna Rada supported the draft law on raising taxes: what will change for businesses and citizens

On the second attempt, the Verkhovna Rada of Ukraine adopted in the first reading the government draft law No. 11416-d, which provides for a number of changes in the tax legislation. People's deputy from the "Golos" faction Yaroslav Zheleznyak reported this. Support for this draft law is considered a key stage on the way to a significant increase in tax rates, which can significantly affect business and citizens.

241 deputies voted for the bill, while 14 parliamentarians spoke against it, 28 abstained, and 37 did not participate in the vote at all. It is important to note that even if the law is finally adopted, its implementation is planned "retroactively" from October 1.

As Zheleznyak explained, due to the insufficient number of votes (219) for the shortened procedure for submitting amendments, consideration of the draft law in the second reading was postponed until mid-October. This means that amendments and final adoption of the document can only take place next month.

We will remind that during the first attempt on September 3, the Council lacked only two votes to adopt this draft law. After that, the document was sent for reconsideration in the first reading. The updated project No. 11416-d was approved by the specialized committee on finance, tax and customs policy.

The main provisions of the draft law include an increase in the tax rate of banks on profits for 2024 from 25% to 50%, which came as a surprise, as the authorities had previously announced their rejection of this idea. It is also proposed to tax non-banking financial institutions at the rate of 25% of profits.

In addition, the document provides for a temporary increase in the military levy from 1.5% to 5% until the end of martial law. For entrepreneurs on the uniform tax of group III, the rate of military levy is introduced at the level of 1% of income, and for FOPs of groups I, II and IV - 10% of the minimum salary.

The government also plans to change the tax period for reporting on the income of individuals from quarterly to monthly, and for gas stations to introduce advance payment of income tax. In general, it is predicted that these measures will bring about 58 billion hryvnias to the state budget in 2024 and 137 billion hryvnias in 2025.