The government is going to destroy the country's defense system by taking away the military personal income tax from the communities

The government approved changes to the Budget Code for financing of the security and defense sector and the development of the defense-industrial complex, where he proposes to take away the entire military personal income tax from communities from October 1, 2023.

This is reported by ZN.ua.

Yes, from 1 In October, it is proposed to transfer revenues from taxation of salaries in the defense sector to a special fund of the state budget instead of community budgets.

"This means the inclusion in the state budget of income from personal income tax (personal income tax and a rate of 18%) of financial support, rewards and other payments received by military personnel, police officers and persons of rank and file, which is paid in accordance with the Tax Code in the relevant territory of Ukraine.

In particular, the forecast volume of revenues this year should amount to 25.8 billion hryvnias, and already in 2024 – 93.7 billion hryvnias,” the publication writes.

It is noted that these funds will be distributed equally between the State Special Service and the Ministry of Strategy and Industry. The first will purchase special equipment, and the ministry will allocate funding for the implementation of programs for the reform and development of the defense-industrial complex, as well as the expansion of production capacities. on the personal income tax, which has been in effect since October 1.

We remind you that earlier  the Association of Cities of Ukraine appealed to the president, the Cabinet of Ministers and the Verkhovna Rada and stated that the withdrawal of the military personal income tax from communities would destroy the defense system.

The appeal emphasizes that defense funds provided by local governments to military units are a supplement to centralized provision that is affordable, fast, transparent and under state control.

"Local government spending on security and defense exceed the amount of income from “military” Personal income tax is at least 77%, because it is not only assistance to the security and defense forces, but also provision of IDPs, clearing and restoration of buildings and infrastructure destroyed by explosions, maintenance of hospitals, including those near the front line, assistance to the families of military personnel, – emphasize in AMU.

In order to avoid improper use of funds, the Association proposes to form targeted protected items of expenditures of local budgets, formed from 70% of “military” Personal income tax, the so-called “security and defense budget” and freeze reverse withdrawals. Thus, “military” The Personal Income Tax Office will remain mobile and transparent in local self-government bodies and will continue to serve our common Victory, AMU emphasizes.

Prepared by: Nina Petrovych