246 deputies voted «for»
The members of the Verkhovna Rada supported draft law № 4576 on prevention of the financial disaster and creation of preconditions for the economic growth in Ukraine, with 246 “for” votes, RBK-Ukraine reports.
This bill specifies and legalizes a new basic 18% rate of taxable income gained by the enterprises, and amount of value-added tax totaling 20%.
The rates of extraction tax related to mineral resources will also increase: gas condensate rate has grown up to 42%, while oil extraction rate still stands at 39%. It is also proposed to expand a number of taxpayers by introducing an additional levy on the use of natural gas.
The rate of tax imposed on use of radio frequency spectrum in Ukraine has been suggested to increase twofold.
The tax rate applied to purchase of new cars and motorbikes with engines over 0,5 liter will grow twice; the excise duty on motorbikes with engines of up to 0,5 liter will make up 0,06 euro per 1 cubic cm, and excise duty on vehicle bodies will be increased twofold.
The government has decided to cancel refund of VAT imposed on export of cereals starting from October 1, 2014, instead of January 1, 2014 as offered before (i.e. to levy a new cereal yield). However, VAT is not levied on the agricultural products; they are regulated by special taxes.
As a retirement insurance contribution, tax rate of 0,5% will be charged on purchase or sale of currency in cash or cashless transactions carried out by legal and natural persons.
A new tax with rate of 15% (17%) per annum will be also imposed on retirement benefits if their amount exceeds 10 ths hryvnias, the excess amount will be taxed.
The import tax on goods transported through international mail will be reduced, from 300 up to 150 euro.
The progressive rate tax will be imposed on income of natural and physical persons, with the following rates - 15%, 17%, 20% and 25% (25%, if income exceeds 1 mln hryvnias), and is applied to all types of income, including, in particular, dividends, interest, royalty, investment income, with liability of a taxpayer to claim recalculation of taxes charged (retained) upon the results of the year under review. This tax does not cover salary income, but is applied to unearned income.
Besides, according to this bill, the excise duty on alcohol and tobacco products will be raised by 25%, beer - by 42,5%. Thus, aggregate rise in excise duty on spirit and alcohol drinks in 2014 will total 39%, on tobacco products - 31,5%, on beer - 42,5%.
Total number of law enforcement bodies will be also reduced (the Ministry of Interior, Security Service of Ukraine, State Border Guard Service of Ukraine, and Prosecutor’s Office).
Additionally, this bill abrogates special retirement benefits amounting to 80% of salary to be received by judges, prosecutors and government employees, from now on the amount of their pensions will be calculated by applying a general scheme, namely 70% of salary.
In conformity with the law, any benefits and privileges for government employees will be stopped.
It should be noted that the bill has read and passed on second try: earlier today the Ukrainian Parliament voted down the bill on preventing the financial disaster.
