You're reading: War tax to be imposed on wages, lottery prizes, says official

The war tax will be imposed on wages and other payments of the labor payment fund and lottery prizes, Head of the State Fiscal Service Ihor Bilous said at a press conference at Interfax-Ukraine on Monday, Aug. 4.

“1.5 percent are taken from income of individuals in the form of wages and
other income, which are part of the labor payment fund, as well as from
current or compensation payments accrued in connection with labor
relations or civil agreements. The tax will be collected from state
lottery prized, and this is the source of income,” he said.

Bilous said that the war tax will be paid by employees.

“The war tax does not touch residents who do not receive income,
which is part of the labor payment fund, in particular, pensioners,” he
said.

Bilous said that the State Fiscal Service jointly with the Economic
Development and Trade Ministry and Finance Ministry are studying the
possibility of revising the approach to the procedure for accruing the
single social fee to cut the burden on the labor payment fund for
employers, which will be the economic incentive for bringing wages from
shadows.

“The high tax burden drove wages to the shadow and 70-80 percent of business
pays wages in envelops or pays a part of wages in envelops, which
totals astronomical sums,” he said.