Ukrainian Politics, Economics

 Rada approved bill on tax reform in the first reading

The Verkhovna Rada adopted the bill on tax reform in first reading.

258 deputies voted for the bill No.1578. The minimum number of votes required to pass the law is 226, Censor.NET reports citing Ukrainski Novyny.

The corresponding bill provides for the establishment of a single rate for subsoil use, electronic VAT administration, limiting cash payments to the amount of 15 minimum wages (about 20.3 thousand hryvnia).

Read also: Government intends to reduce the number of taxes from 22 to 9 and reduce tax burden on wages

The document envisages reduction of taxes and fees from 22 to 9 (corporate income tax, income tax on individuals, VAT, excise duty, environmental tax, rent payment, fee, real estate duty (local) and the fixed tax (local)).

According to the document, the rate of charge from the purchase of currency increased from 0.5% to 2%.

The bill preserves the rates on income on individuals if the salary is up to 10 times exceeding the minimum one at 15% level, and rises it to 20% for salaries exceeding the minimum one more than 10 times (being 17% currently).

As part of the tax reform, the Cabinet decided to impose a tax at the rate of 25 thousand hryvnia for the cars that are not older than 5 years with the engine volume exceeding 2,500 cubic centimeters for diesel engines and 3,000 cubic centimeters for gasoline ones.

The payment rates for subsoil use for gas extraction which will be used not for the population are set at 20% or 55% depending on the depth of extraction for the year 2015 as well as the single payment for subsoil use (rent payment), which is proposed to combine 4 taxes and fees.

The law reads that the collection from the sale of jewelry made of gold, silver and platinum in the amount of 5% of their value will be converted to a fee that jewelers will pay applying the state hallmark on piece of jewelry made of precious metals, the amount of which will be 10% of the basic precious metal at the National Bank rate.

The Verkhovna Rada Committee on Taxation and Customs Policy recommended the Parliament to adopt tax reform with a number of changes Dec. 25.

Relevant Committee recommended to withdraw from the changes to the Tax Code provision on direct debt collection without recourse to the courts, provision limiting the rate of 30% of the classification of goods to total costs and limiting the VAT refund on grain exports.

It is also recommended to abandon the universal declaration of citizens' incomes ("zero" declaration, 30% tax on the difference of expenditure over income).

At the same time, the articles on rising of the real estate tax and passive income are withdrawn from the tax reform.

Read also: Government Promises Two-Year Tax Holiday for Small and Medium Businesses

It was proposed not to impose the five-percent tax on inheritance (for the lineal relatives) at the amount of more than 1 million hryvnia and to withdraw the norm on the compulsory use of cash registers.

As reported earlier, the Cabinet registered a bill No.1578 in the parliament on Dec. 22, which bill provides for a number of changes to the Tax Code.

Источник: https://en.censor.net.ua/n317965