The Ukrainian Parliament approved a record tax increase.

On October 10, the Verkhovna Rada adopted draft law No. 11416-d, enacting a historic tax increase. The document provides for:

1. An increase in the military levy from 1.5% to 5%, except for the military – their rate will remain unchanged
2. The introduction of a military tax for individual entrepreneurs
3. A 50% income tax rate for banks
4. A 25% income tax rate for financial companies
5. Rent increases for crushed stone, sand, and kaolin miners
6. An increase in the minimum tax liability for agricultural producers and others

Portions of the draft law will enter into force from October 1 retroactively. An amendment was removed from the draft law, which included several proposals for mitigating the consequences of the military levy increase.

It should be noted that the day before the parliament’s main legal department recognized some parts of the draft law as in conflict with Ukraine’s Constitution. These particular aspects violate the principle of taxpayer equality and non-discrimination, the principle of legal certainty, and predictability of the law.