People’s deputy from the Servant of the People faction Alexander Dubinsky registered in the Verkhovna Rada two related bills No. 2252 and No. 2253 on amending the Tax and Budget codes on the abolition of the military duty by tax payers
This is stated on the website of the Verkhovna Rada, reports «DS».

As noted in the explanatory note to one of the bills, the legal nature of the military levy, according to experts and practitioners, is incomprehensible, since the military levy actually repeats the fiscal functions of the personal income tax through the same taxable items. Given the above, the payroll suffers an excessive tax burden in comparison with the level of taxation of these incomes in other countries of the world, which significantly worsens the competitiveness of domestic enterprises and goods in international markets. It also becomes a factor in a significant share of the country’s shadow economy, including shadow wages issued “in envelopes”.

At the same time, the military duty and personal income tax, as noted above, duplicate each other, which leads to double taxation of the same object of taxation — wages, remuneration under civil law contracts and the like.

According to the author of the bill, it is possible to compensate for the military duty due to the positive growth trend of the economy, as well as by reducing shadow schemes by reducing the tax burden on the taxpayer payroll.

Rasha was informed that more than 70 million hryvnias of military duty were sent by Volhynians to the state budget during the first quarter of 2019.

Recall, earlier, Alexander Dubinsky withdrew his bill on the introduction of a 1% fee when buying cash currency.

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