Getmantsev: Tax Change Legislation Must Be Passed, There Are No Alternatives

In a recent interview with Ukrainian Radio, Danilo Getmantsev, the head of the Verkhovna Rada Committee on Finance, Taxation and Customs Policy, representing the 'Servant of the People' party faction, underscored the significance of adopting legislation concerning tax changes. He pointed out that the current economic situation in Ukraine is not merely a result of the economy's state but is instead driven by the political processes unfolding within the country. 'As a result, the decisions we need to secure assistance from our partners are not being made,' Getmantsev emphasized.

Getmantsev also reported that a working group convened today to discuss three tax change bills submitted by the government. 'We definitely have no alternative but to pass these acts. We will undoubtedly refine them a bit, as even today there were certain technical and substantive comments that we will certainly take into account, but the fact that they are needed for the country is absolute,' he stated.

Among the bills discussed, Getmantsev highlighted a proposal concerning the taxation of digital platforms, commonly referred to as the 'OLX tax,' which he described as 'absolutely positive and supported by businesses.' He noted that this bill is tied to funding, making it even more relevant.

Another significant piece of legislation is the extension of the military tax at a rate of 5% for three years following the end of martial law. Getmantsev characterized this decision as 'absolutely reasonable and correct,' pointing out that in the United States, the number of income tax payers has increased tenfold, and a similar 'victory tax' of 5% has been introduced. 'I believe this is a well-considered decision and a proper payment that each of us must make to our army, as everything we collect from this tax goes 100% to the military,' he explained.

The deputy also commented on the taxation of international parcels, indicating the need to abolish the exemption for foreign producers supplying goods to Ukraine without VAT. 'This negatively impacts the economy. Today, we heard representatives from many sectors of our economy at the committee, and they all unanimously expressed the necessity for equality in taxation in this context,' Getmantsev added.

According to Getmantsev, the majority of deputies are ready to take responsibility for making complex but necessary decisions for the country. 'I am convinced that we will find the necessary majority to ensure that all these decisions and what is outlined in the World Bank program are adopted - and we will receive the corresponding assistance from our partners,' he noted.

It is worth recalling that earlier, Ukrainian President Volodymyr Zelensky stated that there are ten priority bills in parliament, the passage of which would allow Ukraine to secure external funding. On March 10, the Verkhovna Rada failed to vote on government bill No. 14025, which envisages international automatic exchange of information on income received through digital platforms. MP Yaroslav Zheleznyak reported that the government planned to submit amendments to this document for the second reading, taking into account the IMF's requirements, including the abolition of the exemption for parcels up to 150 euros, the introduction of VAT for individual entrepreneurs, and the establishment of an increased military tax rate of 5% after the end of martial law.

On March 30, it became known that the Cabinet of Ministers approved and submitted to the Verkhovna Rada draft laws regulating the taxation of income received through digital platforms, the introduction of international information exchange (DAC7), the taxation of international parcels starting from 0 euros, and the extension of the military tax after the end of martial law. At the same time, the possibility of implementing VAT for simplified tax system individual entrepreneurs is being discussed.

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