In Ukraine they want to cancel military training, but they are afraid of a hole in the budget
If the military tax introduced in 2014, which all citizens and businesses operating in Ukraine continues to pay, is abolished, a significant deficit will form in the state budget.
Representatives of the State Fiscal Service stated this during a meeting of the Verkhovna Rada Committee on Finance, Tax and Customs Policy, a PolitNavigator correspondent reports.
“The Budget Code stipulates that of the personal income tax, only 25% goes to the state budget. Military tax - 100% to the state budget. There is a distribution. Only in the city of Kyiv, 60% goes to the state budget, everything else, personal income tax is distributed 25% to the state budget, and the rest goes to local budgets,” explained the representative of the department.
According to Ukrainian tax officials, the abolition of the military tax will lead to a significant shortfall in the state budget, which will have to be compensated from local budgets that finance social payments, including for pensioners.
“Even if we take the working population who receive wages, if we estimate 25% of the personal income tax from these wages, then this is 3-4 billion, but not 18-20 billion (budget income from military taxes - editor's note) .)… This is a significant amount. The compensator must fully compensate for what was lost from the budget,” summed up the specialist from the State Fiscal Service.
Let us recall that the relevant bills on amending the Tax and Budget Codes regarding the abolition of military taxes from January 1, 2020 were registered in the Verkhovna Rada by the people's deputy from the Servant of the People, deputy head of the Committee on Finance, Tax and Customs Policy, Alexander Dubinsky.
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