The Ministry of Economy of Ukraine’s Plan to Increase Taxes for Individual Entrepreneurs
The Ministry of Economy of Ukraine has announced its intention to raise taxes for individual entrepreneurs (sole proprietors). The government is working on a bill to introduce a mandatory military fee for single tax payers.
This step is aimed at addressing budgetary issues. Currently, the military fee for sole proprietors is 1.5%, but entrepreneurs do not pay it. According to the new bill, sole proprietors will be required to pay this military fee.
Ukraine has over two million sole proprietors. Over the past year, Ukrainians have created a record number of sole proprietorships in the past 10 years — about 315,000. However, in times of war, such innovations are possible.
Senior expert of the Reform Support Team of the Ministry of Economy, Alina Boyko, noted that such changes contradict the concept of a simplified tax system, which involves minimal reporting and taxes. However, in times of war, such a step may be justified.
It should be noted that the government is considering the possibility of increasing the military fee to 5%, with the total tax burden amounting to 19.5%.
