President Volodymyr Zelensky today, November 28, signed law No. 11416-d amending the Tax Code, which includes an increase in military tax and other taxes.
The information about the signing is noted in the law's card on the parliament's website.
Zelensky has become much more likely to ignore the signing of adopted laws during the great warDespite the constitutional requirement, Volodymyr Zelensky has not signed or vetoed 47 laws. The president began to ignore adopted laws much more frequently during the war.The law, in particular, provides for:
- an increase in the military tax rate from 1.5% to 5%;
- the introduction of a military tax for individual entrepreneurs (FOP) of groups I, II, and IV at a rate of 10% of the minimum wage established on the first day of the reporting month;
- individual entrepreneurs of group III will pay taxes at a rate of 1% of income as a military tax;
- the introduction of a 50% tax on banks' excess profits;
- the introduction of a 25% profit tax for all financial companies, except for insurance companies.
Prime Minister Denys Shmyhal stated that the tax increases will take effect on December 1. Earlier, the head of the finance, tax, and customs policy committee, Danylo Hetmantsev, explained the final version of the draft law.
It is worth noting that the Cabinet initially proposed to introduce a military tax for transactions involving the purchase of bank metals, real estate, and for the first registration of a vehicle. During the revision of the draft law, they decided to abandon the military tax on luxury items. Hetmantsev explained the reasons for this decision.
Previously, Finance Minister Serhiy Marchenko explained why the Cabinet proposed increasing the military tax instead of VAT.
From the infographic by "Slovo i Delo," you can learn about the VAT rates in different countries. We also wrote about the experience of paying military tax in various countries and the rates applied.
It's important to note that the tax bill was submitted to the president for signing more than 40 days ago. According to "Slovo i Delo," Zelensky has delayed the signing of nearly fifty laws during his term. The president has particularly abused ignoring bills during the full-scale war.