The mobilisation of additional revenues from Ukraine's state budget for 2024 includes measures to increase revenues from military levies, excise taxes, and the introduction of monthly advance payments from gas station income tax.
What is known about tax increases in Ukraine
The proposals include minimal interest rate increases, mostly from 0.1% to 1.5%, the Ministry of Finance assures.
These measures will ensure additional revenues of at least 0.5% of GDP this year, or UAH 44.2 billion, required by Ukraine's obligations to the IMF.
The Ministry of Finance noted that as early as December 2023, representatives of the Ukrainian authorities and IMF experts formed a working group to develop proposals for short-term measures to increase incomes in 2024.
Changes in the payment of the military levy will apply to legal entities as corporate income taxpayers and single taxpayers of the third and fourth groups, as well as individual entrepreneurs for single taxpayers of the first, second, third and fourth groups.
The additional military levy will affect buyers of banking metals from banks and cars subject to the first state registration in Ukraine, real estate sellers, retailers of jewellery made of gold, platinum and precious stones, as well as cellular operators providing any services mobile communication.
The proposals also provide for bringing the excise tax on fuel in line with minimum EU standards, introducing an excise tax on water, including mineral and carbonated water, with the addition of sugar or other sweeteners or aromatic substances, and expanding the list of excisable goods due to the taxation of cannabis plants with an excise tax , the Ministry of Finance reported.
By the end of the first quarter of 2024, the relevant bills are expected to be submitted to the Cabinet of Ministers and considered by the Verkhovna Rada.
