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

Tuesday, July 6, 2021
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.
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