Ex-Minister Klymenko: “The government will receive 10 times less than it was expected from military fee”
Instead of the expected UAH 2.9 billion from the military fee the state will receive UAH 316 million (10 times less). It will be paid by citizens and employer. Oleksandr Klymenko – ex-minister of Revenue and Duties – wrote about it on his official Facebook page.
“Verkhovna Rada voted for the package of tax changes, including an additional 1.5% “military” fee from personal income. The law does not fix differentiation by income level (which was discussed earlier). Everyone will pay «military» fee. The face that this tax will be charged till the end of the year (during 5 months) can soothe citizens. At the same time representatives of the government publicly stated that additional UAH 2.9 billion to support the army will be raised in the budget due to the introduction of the military tax, “- said Klymenko.
He calculated that in Ukraine, the tax burden on the wage fund (together with the ECB) is about 52-57% (depending on the size of the ECB). “Theoretically, 15% out of it are paid by the employee (PIT), and the rest – the employer. In fact, “military fee” plus the 15% means that each citizen will pay 16.5% from the income. Thus, the total tax burden on the employer, who is paying the “white” salary, will increase to 53.5% – 58.5%,” – said the ex-minister.
On the basis of expectations, which were declared by the government, additional revenues should be about UAH 580 million per month in order to bring UAH 2.9 billion to the budget till the end of the year. Klymenko noted that “under the current average rate of personal income tax of 15% (10 times more than the military fee), it was expected for UAH 7.96 billion budget revenues from individuals for the 2014, or UAH or 663 million per month. In fact, it was collected UAH 3.8 billion during the first 6 months, about UAH 633 million per month”.
Consequently, Klymenko concludes, “in case of maintaining this dynamic, government will receive max. UAH 63.2 million per month, or UAH 316 million till the end of the year via military fee from the citizens”. “It is about 10 times less than it was expected, by UAH 2.9 billion “, – he said.
According to Oleksandr Klymenko, the only obvious answer on «where can government take these UAH 2.9 billion from the military fee and the additional UAH 3.3 billion (the expected revenues from the tax on deposits) – is to go on the way of strengthening administrative pressure on employers, who pay wages in “envelopes”.
Link to source: Glavcom