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Military Levy In Ukraine Will Remain After The War

Military Levy In Ukraine Will Remain After The War

One of the key requirements of the IMF has been fulfilled.

Ukrainian President Vladimir Zelensky has signed a law extending the military levy for three years after the end of the war.

This is reported by RBC-Ukraine with reference to the website of the Verkhovna Rada.

The matter concerns amendments to the Tax Code of Ukraine, in particular to paragraph 16-1 of subsection 10 of section XX "Transitional Provisions", which regulate the collection of military levy.

According to the card of the bill, on April 14, the document was returned to Parliament with the signature of the head of state.

According to the document, a separate special fund will be created in the Budget Code, where the money from the military levy will be directed.

This draft law is one of the key requirements of the International Monetary Fund (the so-called "beacon").

The military levy will remain for another three years so that the state would have money not only for the army, but also for post-war reconstruction and restoration of destroyed infrastructure.

The military levy is now set at:

5% - for individuals (for military personnel and employees of the security and defense sector - 1.5% of income in the form of cash collateral (except for income exempt from taxation by the military levy);

10% of the minimum wage - for FLPs of groups 1, 2 and 4;

1% of income - for single tax payers of group 3 (FLPs and legal entities, except for e-residents).

Why it is important

The adoption of Bill No. 15110 was part of the implementation of a package of ten critically important laws, the need for which to obtain international financial support was previously emphasized by Ukrainian President Volodymyr Zelensky.

According to Prime Minister Yulia Sviridenko during a meeting with committee chairmen, the decision was necessary to comply with the terms of the IMF loan program and the European Ukraine Facility initiative.

As a result, on April 7, the Verkhovna Rada approved the document as a whole by 257 votes, establishing that the military levy will continue to be in force for three more years after the end of the war.

The Ukrainian Finance Ministry estimates that such a move will raise about 140 billion hryvnias annually for the state budget.

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