The Verkhovna Rada is preparing to consider three important government bills concerning changes to tax legislation. The adoption of these documents is a prerequisite for continuing cooperation with the International Monetary Fund and other international partners, which is crucial for Ukraine’s further financing.
This is reported by Finway
Main Aspects of the Tax Initiatives
The Chairman of the Parliamentary Committee on Finance, Taxation, and Customs Policy, Danilo Hetmantsev, representing the lawmakers’ position, emphasized that the discussed bills are essential for the economic stability of the country. He pointed out that the current difficulties in the economy are caused not by its state but by the political processes occurring in Ukraine, and that is why the adoption of necessary decisions for receiving international assistance is being delayed.
“We definitely have no alternative but to adopt these acts. We will certainly refine them a bit, as even today there were certain technical comments and substantive issues that we will definitely take into account, but the fact that they are needed for the country is absolute”
According to Hetmantsev, the government initiatives concern three areas. The first bill proposes taxation of digital platforms, specifically referring to the so-called “OLX tax.” Its implementation is supported by the business community, and the allocation of additional funding is tied to the adoption of the document.
Military Tax and Cancellation of Benefits on International Packages
The second bill proposes to extend the military tax at a rate of 5% for another three years after the end of martial law. Hetmantsev calls this decision justified, as all collected funds are directed to the needs of the army. For comparison, he cited the experience of the United States, where the number of income tax payers has increased tenfold, and a similar “victory tax” of 5% has also been introduced.
The third bill concerns the cancellation of benefits on international packages. Currently, foreign manufacturers supplying goods to the customs territory of Ukraine are exempt from VAT, while Ukrainian manufacturers must pay this tax. According to the deputies, this creates unequal competitive conditions and negatively affects the economy. All members of the relevant committee unanimously expressed support for establishing equal tax rules.
Hetmantsev expressed confidence that the majority of lawmakers will support these legislative initiatives, which are necessary for the country. He emphasized that the adoption of the bills is included in the World Bank program and will allow for the receipt of further financial assistance from international partners.
Earlier, President Volodymyr Zelensky announced the presence of ten priority legislative initiatives in parliament that open up opportunities for Ukraine to attract external financing.
It is worth noting that on March 10, the parliament did not support government bill No. 14025, which proposed the implementation of international automatic exchange of information on income obtained through digital platforms. It is planned that amendments will be made to the document by the second reading, taking into account the IMF’s requirements – in particular, the cancellation of the exemption on packages up to 150 euros, the introduction of VAT for individual entrepreneurs, as well as the fixation of the increased military tax at 5% even after the end of martial law.
On March 30, the Cabinet of Ministers approved and submitted to the Verkhovna Rada draft laws regarding the taxation of income obtained through digital platforms (DAC7), taxation of international packages from the first euro, as well as the extension of the military tax after the end of martial law. The possibility of implementing VAT for simplified tax individual entrepreneurs is still under discussion.