You're reading: Parliament approves introduction of temporary 1.5 percent war tax from wages

The Ukrainian parliament has supported a proposal of the Cabinet of Ministers of Ukraine to introduce a temporary war tax of 1.5 percent on the wage fund until Jan. 1, 2015, Batkivschyna parliamentary faction leader Serhiy Sobolev said at a briefing on Thursday, July 31.

The lawmaker said that the draft law on amendments to the Tax Code of
Ukraine and some other Ukrainian laws was supported by the lawmakers
(306 supporting votes).

“The tax that will be paid by all Ukrainian citizens and it totals Hr 15 from Hr 1,000. This is a war tax, but I would call it a tax for
restoration of peace in the country,” he said.

The tax will be collected at the rate of 1.5 percent from incomes of
individuals in the form of wages, other bonuses and compensation
payments which are accrued, paid or issued to the taxpayers in regard
with the labor relations and under civil legal agreements.

The tax will be collected from prizes won in state and non-state money lotteries and prizes of participants of gambling.

According to the Finance Ministry of Ukraine, the introduction of the
war tax will allow accumulating Hr 2.9 billion as one of the measures
to ensure the financing of defense.