The Budget Committee of the Verkhovna Rada approved a draft amendment to the Budget Code, which provides for the allocation of military tax to a special fund of the state budget. Parliamentarians recommended adopting this draft law immediately as a basis and in its entirety.
This is reported by Finway
Military tax funds — for payments to military personnel
According to the initiative, from January 1, 2027, and until the end of the third post-war year, the military tax will be accumulated not in the general fund but in a special fund of the state budget. It is expected that more than 200 billion UAH will be received annually in this way, which will be directed exclusively to the monetary support of the servicemen of the Armed Forces of Ukraine.
“This step has more political significance, as currently almost all own revenues of the general fund of the state budget are directed to defense needs — indeed, both for the monetary support of military personnel of all defense forces and for weapons. However, after the end of active hostilities, the fixed targeted allocation of the military tax will be practically necessary due to the increase (return to normal) of the share of non-military expenditures and the decrease in the volumes of international assistance that currently covers them,” explained Pidlas.
Features of the changes and military tax rates
The voting on draft law No. 15167 is scheduled for May 12. The innovation reflects a change in the approach to financing the defense sector — in particular, after the end of the active phase of the war, when a decrease in international support and an increase in non-military expenditures of the state are expected, a clear targeted allocation of these funds is needed.
Earlier, in April, the Verkhovna Rada adopted draft law No. 15110, which extends the action of increased military tax rates for another three years after the end of the war. During this period, the following rates will remain in effect:
- for individuals — 5%;
- for military personnel and employees of the security and defense sector — 1.5% of income in the form of monetary support (excluding income exempt from military tax);
- for individual entrepreneurs of the 1st, 2nd, and 4th groups of the single tax — 10% of the minimum wage established on January 1 of the reporting year;
- for payers of the single tax of the 3rd group (individual entrepreneurs and legal entities, except for e-residents) — 1% of income.
The President signed the relevant law on April 14, and it has already come into effect.