21/9/2014 14:04
RIA Novosti

World

Ukraine’s Parliament Introduces 1.5% Military Tax

Topic: Situation in the South-East of Ukraine

15:15 31/07/2014
Tags: economy, taxation, military, Ukrainian Armed Forces, Oleksandr Turchynov, Luhansk, Donetsk, Ukraine

KIEV, July 31 (RIA Novosti) — Ukraine’s parliament amended its tax laws to introduce a 1.5-percent military tax based on workers' income, Parliament Speaker Oleksandr Turchynov said Thursday.

“With the goal of providing finances to raise the military capabilities of the state, it is suggested to temporarily introduce a new all-national tax, a military tax through January 1, 2015. This tax will be set at 1.5% from the incomes of individuals from their salaries, as well as from other income, compensation or other monetary awards that are transferred to the taxpayer," the amendment reads.

The Ukrainian government hopes to receive around $240 million in financing from the new tax.

The tax is planned to be applied until the end of this year in addition to the income tax paid by individuals. The funds raised from the tax are to be used to finance the country’s Armed Forces.

Ukraine’s new authorities earlier said the country’s treasury was empty and announced that the government would be cutting back costs. In particular, Kiev developed a sequestration of the budget that applies cuts to social benefits.

In late February, Ukraine’s Cabinet of Ministers announced a “regime of economy” in order to balance its budget.

Kiev has been conducting a special military operation in eastern Ukraine since mid-April. The fighting intensified after Donetsk and Luhansk regions proclaimed themselves independent people’s republics in May. Hundreds of people, including civilians have died in both regions over the past months.

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RIA NovostiUkraine’s Parliament Introduces 1.5% Military Tax

15:15 31/07/2014 Ukraine’s parliament amended its tax laws to introduce a 1.5-percent military tax based on workers' income, Parliament Speaker Oleksandr Turchynov said Thursday.>>

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