Collect more taxes: President’s Office has set a task for local communities
10 February 09:01
President of Ukraine Volodymyr Zelenskyy is tasking local communities to work more actively to collect local taxes to strengthen their economic subjectivity. This was stated by Deputy Head of the Presidential Office Viktor Mykyta, Komersant ukrainskyi reports with reference to Interfax-Ukraine.
“The President has set us the task of optimizing the work of communities in collecting taxes: this is the land tax and all taxes collected locally. And this is also a certain element of decentralization, when the head of the community will understand and plan the collection of taxes in the city for himself,”
– he emphasized.
Mykyta, who is in charge of regional policy, noted that not every community leader is currently aware of their own responsibility for the economic viability of their locality. According to him, communities should reorient themselves from competing for state subventions to creating jobs, as this is the key source of local budget revenues.
“They should not prioritize fighting for a particular subvention, but rather set themselves the task of creating jobs, because this is the main source of budget revenues. In this case, it becomes self-sufficient,”
– explained the Deputy Head of the OP.
Mykyta also emphasized that the decision to direct the “military” personal income tax (PIT) to the central budget was correct. According to him, this encouraged local authorities to work more actively to increase their own revenues.
“…in addition to the military personal income tax, they have many other areas of collection,”
– the official said.
As an example, he cited the hotel tax, which can become a significant source of revenue in tourist regions. Mykyta mentioned the Yasinya territorial community, where local authorities effectively use this tax for development.
At the same time, it is important to have an honest dialog with business, he emphasized.
“This is a matter of conscience and honor, when business realizes that the head of the community is trying to do his best for them. Then they realize that they need to pay more, because the money will be spent on tourist infrastructure: trails, roads, and other things that will become a magnet for tourists,”
– Mykyta said.
According to him, with this approach, communities will be able not only to stabilize local budgets but also to attract additional resources for infrastructure and tourism development.
As reported by , individual entrepreneurs now have to submit tax reports on a monthly basis.
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Local taxes and fees
Behind the talks of officials from the Office of the President of Ukraine lies a harsh reality for local communities – out of more than 130 tax payments in Ukraine, only 4 are collected at the local level.
Article 10 of the Tax Code of Ukraine. Local taxes
10.1. Local taxes include:
10.1.1. property tax;
10.1.2. single tax.
10.2. Local fees include:
10.2.1. fee for parking spaces;
10.2.2. tourist tax.
More recently, a fifth source of revenue, the personal income tax on military personnel, was taken away from local communities. Previously, 60% of this tax remained in the communities where the military unit was located, and in 2022-2023 this figure was even increased to 64%. However, starting from 2024, all the profit from the collected military personal income tax goes to the state budget.
