On October 10, the Verkhovna Rada of Ukraine passed Bill 11416-d, which foresees a significant increase in taxes aimed at financing military expenses. This decision has considerable implications for the budgets of citizens and businesses.
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Key changes in tax policy
- Increase in military tax: The military tax on salaries will rise from 1.5% to 5%. This increase may significantly impact the net income of employees.
- Introduction of military tax for sole proprietors: The military tax will also be applied to individual entrepreneurs (FOP), adding to their financial obligations.
- Tax for banks: Banks will pay a 50% tax in advance for 2024, which could affect their ability to lend to businesses and individuals.
Potential impact on budgets
These changes could lead to a substantial increase in the tax burden on citizens and businesses, which in turn may affect consumer activity, investment, and overall economic growth.
Conclusion
The rising security costs due to increased taxes may have far-reaching consequences for the Ukrainian economy. It is essential to monitor these changes and their impact on various sectors. For a detailed analysis, refer to our latest macroeconomic digest: link.
