The Verkhovna Rada passed a bill on raising taxes, cutting it by half

The Verkhovna Rada has passed a tax increase bill, which is set to come into effect retroactively from October 1.

This information reported according to MP Yaroslav Zheleznyak.

However, the tax bill was significantly altered before being adopted.

Zheleznyak noted that Amendment No. 988, which accounted for half of the bill, was removed before the final approval. He speculated that the law might need to be re-voted on to restore some order to the bill.

MP Oleksiy Honcharenko pointed out that in the current version, the increase in the military tax from 1.5% to 5% applies to everyone except the military.

Here’s what the bill looked like before Amendment No. 988 was removed:

• Increase of the military tax from 1.5% to 5%.
• Implementation of a military tax for individual entrepreneurs (FOPs).
• A 50% tax on banks.
• Increase of the minimum tax obligation (MNO) for land.
• A 25% corporate tax on financial companies.
• Exemption of cashback from taxation.
• Transition to monthly reporting for personal income tax (PIT).
• Increase in royalties for gravel extraction.

The main legal department of the Verkhovna Rada previously stated that the bill, in this form, did not comply with the Constitution.