Ukrainian Parliament to Raise Taxes to Increase State Budget Revenues by $2 mln a Year

Tuesday, July 6, 2021
2 MIN
Ukrainian Parliament to Raise Taxes to Increase State Budget Revenues by $2 mln a Year

The Ukrainian Parliament adopted as a basis the draft law "On Amendments to the Tax Code and Certain Legislative Acts Concerning Balancing Budget Revenues"

264 people's deputies voted for the adoption of the corresponding government bill # 5600 in the first reading.

Such updates will provide an increase in state budget revenues in the amount of about $2 mln annually, says finance minister Sergei Marchenko.

Among the key proposals of the bill are:

  • indexation of excise and environmental tax rates, as well as rent, including a significant increase in the environmental tax rate for discharges, emissions of certain pollutants, as well as an increase in the rent for iron ore;
  • the introduction of a ban on travel abroad for the heads of companies with tax debt;
  • the establishment of minimum tax liability in terms of taxation of income related to the production and sale of own agricultural products or the use of agricultural land;
    reduction, for tax purposes, of income received from the sale of one's own agricultural products, the whole size of land plots provided for running a personal peasant farm, or land shares, from 2 to 0,5 hectares;
  • an increase in the tax on personal income from the sale of the third and subsequent real estate objects during the year from 5% to 18%;
    reduction of the terms for the right to receive a tax credit from 1,095 to 180 calendar days;
  • the abolition of the provision according to which transactions in the supply of housing, in addition to their first delivery, are exempt from value-added tax;
    the abolition of the possibility of registering as payers of the single tax of the fourth group of enterprises that carry out activities in the breeding of poultry.
You will be interested