Yuzhanina: Cabinet of Ministers did not actually increase funding for military units
30 October 10:55Nina Yuzhanina, a member of the Verkhovna Rada’s Finance Committee, said that in 2024, budget support for military units will not increase, despite the government’s statements about increasing revenues from the so-called “military personal income tax”. She wrote about this on social media, according to
Yesterday, Taras Melnychuk, a representative of the Cabinet of Ministers in parliament, said that amendments had been made to the Cabinet of Ministers’ resolution No. 69 of 23.01.2024 “Some issues of financing the logistics of military units of the Armed Forces and other military formations” in order to implement the provisions of Law No. 3978-IX “On Amendments to the Law of Ukraine “On the State Budget of Ukraine for 2024″ on financial support for the security and defense sector.”
“The resolution is supplemented with new provisions to regulate the issue of sending in January of the current budget period to the main administrators for the logistical support of military units of military formations the balance of the special fund of the state budget, formed at the end of the previous budget period, the source of which was the receipt of 10/18 percent of the part of the tax on the income of servicemen,”
– he wrote on Telegram.
A number of media outlets interpreted this message to mean that the government was increasing the share of military personal income tax that would go to logistics for the Defense Forces from 10% to 18%.
According to Yuzhanina, the document was adopted to implement the law on amendments to the state budget for 2024, but its provisions do not guarantee an increase in funding for the needs of military formations.
Yuzhanina emphasized that the distribution of “military personal income tax” in 2024 looks like this
- from January 1 to September 30, 2024, 75% of the revenues will go to the special fund of the state budget, 25% – to the general fund;
- from October 1 to December 31, 2024, the proportion will change by 41% and 59%, respectively.
“This means that from October 1 to December 31, 2024, 18% of the personal income tax revenues that are credited to the special fund of the state budget and will be directed to military units of the Armed Forces of Ukraine and other military formations for logistical support are EQUAL to 10% that were credited to the special fund of the state budget from January 1, 2024 to August 30, 2024 and were directed to military units,”
– the MP wrote.
Therefore, reports that the government has “increased” personal income tax for military units, according to her, are not true.
Yuzhanina noted that a possible increase in the share of “military personal income tax” to 30% for military units can only be considered in the state budget for 2025.
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Personal income tax and the military
Last fall, the Verkhovna Rada of Ukraine removed the “military” and “power” personal income taxes (PIT) from community budgets in favor of the central government to a special state budget by passing draft law No. 10037.
Thus, the tax, which previously belonged to local communities, will be redistributed between the State Special Communications Service, the Ministry of Defense of Ukraine, the Ministry of Strategic Industries, the military, etc. from the beginning of 2024.
However, as it turned out, as of July this year, the state did not allocate more than half of the “military” personal income tax to the needs of the Armed Forces. This is evidenced by the data provided by the Ministry of Finance at the request of the Association of Ukrainian Cities.