On November 28th, President of Ukraine Volodymyr Zelensky signed into law a bill that aims to increase taxes in the country. This decision has been reflected in the online map of legislation, with the bill numbered 11416-d, published on the website of the Ukrainian parliament.
The new law, entitled «On Amending Certain Legislative Acts regarding Taxation,» introduces a number of changes to the existing tax system in Ukraine. The main goal of these changes is to increase the state budget revenues and improve the overall economic situation in the country.
One of the key changes introduced by the law is the increase of the personal income tax rate from 18% to 20%. This change will affect all individuals whose annual income exceeds 6 million Ukrainian hryvnias (approximately $220,000). It is expected that this increase will bring an additional 7 billion hryvnias (around $260 million) to the state budget.
Moreover, the law also introduces a progressive tax on real estate. This means that the more expensive the property, the higher the tax rate will be. This change is expected to generate an additional 1 billion hryvnias (around $37 million) in tax revenues.
Another important change is the introduction of a tax on electronic services provided by foreign companies to Ukrainian customers. This tax, also known as the «Google tax,» aims to level the playing field for domestic companies in the digital market. This tax will be applied to online services such as advertising, streaming, and online marketplaces.
The new law also includes measures to combat tax evasion and improve tax administration. This includes the introduction of a mandatory electronic reporting system for businesses and stricter penalties for tax evaders.
The government believes that these tax changes will help to reduce the budget deficit and ensure the stability of the Ukrainian economy. The additional revenues will be used to fund important social programs and infrastructure projects, as well as to pay off the country’s external debt.
Despite the criticism from some opposition parties and the business community, the majority of experts agree that these tax changes are necessary for the economic development of Ukraine. They argue that the existing tax system in the country is outdated and needs to be modernized in order to attract foreign investments and stimulate economic growth.
The signing of the new tax law by President Zelensky demonstrates his commitment to implementing much-needed reforms in the country. Throughout his presidency, Zelensky has been advocating for a fair and transparent tax system that would benefit both businesses and ordinary citizens. And with the current economic challenges facing Ukraine, this move is seen as a step in the right direction.
Some critics argue that these tax changes may have a negative impact on businesses and discourage foreign investors. However, the government has assured that the new tax rates are still competitive compared to other countries in the region and that the benefits of a stable economy far outweigh any temporary difficulties.
In conclusion, the signing of the new tax law by President Zelensky is a significant step towards the economic development of Ukraine. These changes will bring in much-needed revenues to the state budget, promote fair competition in the market, and ultimately contribute to the overall stability and growth of the country. With President Zelensky’s determination to bring positive change, the future looks bright for Ukraine.