Tuesday, 02 January 2024 12:17 GMT

MP Hetmantsev: Tax Change Bills Must Be Passed, No Alternative


(MENAFN- UkrinForm) This was emphasized by Danylo Hetmantsev, chairman of the Verkhovna Rada Committee on Finance, Tax and Customs Policy (Servant of the People faction), in an interview with Ukrainian Radio, as reported by Ukrinform.

According to the lawmaker, the current economic situation is caused not by the state of the economy itself, but by“the processes currently unfolding in Ukrainian politics.”“As a result, the decisions we need to secure assistance from our partners are not being adopted,” he stated.

Hetmantsev noted that a working group was scheduled to meet today to discuss three draft laws on tax changes submitted by the government.

“We clearly have no alternative but to adopt these bills. We will certainly tweak them a bit, because even today there were certain technical and substantive comments that we will definitely take into account, but the fact that they are necessary for the country is an absolute fact,” the committee chairman emphasized.

In particular, he said, the bill on the taxation of digital platforms-the so-called“OLX tax”-is“absolutely positive, supported by the business community, and funding is tied to the bill.”

Another bill concerns the extension of the 5% military levy for three years after the end of martial law, which the politician called“an absolutely reasonable and correct decision.” "The U.S. has increased the number of income tax payers tenfold. And they introduced the same 5% victory tax as we have. At the same time, they imposed additional taxes on businesses. We did not do that, and our only decision that affects everyone is a +3.5% increase to the military levy on wages. It seems to me that this is an absolutely balanced decision and a fair contribution that each of us must make to our army, because 100% of what we collect through this levy goes to the army," explained Hetmantsev.

Regarding the taxation of international parcels, the deputy noted that the issue at hand is the abolition of a tax exemption.

"The point is that today we are effectively granting an exemption to foreign manufacturers who supply goods to Ukraine's customs territory without VAT, while our own manufacturers must pay VAT. This has a detrimental effect on the economy. Today, we heard from representatives of many sectors of our economy at the committee, and they all unanimously spoke in favor of the need for tax equality in this context," the committee chair stated.

In his view, most deputies are“people capable of taking responsibility for making any complex decisions necessary for the country.”

“I am convinced that we will find the necessary majority to ensure that all these decisions and the provisions of the World Bank's program are adopted-and we will receive the corresponding assistance from our partners,” Hetmantsev stated.

As reported, Volodymyr Zelenskyy stated that there are 10 priority bills in parliament, the adoption of which will enable the allocation of external financing to Ukraine.

Read also: Ukraine's mortgage market has stalled – Hetmantsev

On March 10, the Verkhovna Rada failed to pass a vote on government bill No. 14025, which introduces the international automatic exchange of information on income received through digital platforms. According to MP Yaroslav Zhelezniak, the government planned to submit amendments to this document before the second reading, taking into account IMF requirements, namely: to propose the abolition of the exemption for parcels up to 150 euros, the introduction of VAT for sole proprietors, and to maintain the increased military levy at 5% even after the end of martial law.

On March 30, it was reported that the Cabinet of Ministers had approved and submitted to the Verkhovna Rada draft laws on regulating the taxation of income received through digital platforms and the introduction of international information exchange (DAC7); on the taxation of international parcels starting from 0 euros; and on the extension of the military levy after the end of martial law. At the same time, the possibility of introducing VAT for sole proprietors under the simplified tax system is still under discussion.

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