UNIAN
Ukrainian President Petro Poroshenko has signed a law "On Amendments to the Tax Code of Ukraine regarding the military tax," which cancels military tax on currency purchase-sale transactions carried out by individuals.
As UNIAN reported earlier, on May 12, Ukrainian parliament adopted the Law "On Amendments to the Tax Code of Ukraine regarding the military tax" (No. 2436).
According to the explanatory note, the inclusion of transactions with currency to the subject of military tax has had a negative impact on the market of foreign currency transactions.
"From an economic point of view, with regard to transactions with currency, there is an equivalent exchange of one value to another. There is no source of income of an individual in this case,” reads the note.
“In turn, the current version of the Tax Code recognizes the total value of an equivalent exchange as a subject of taxation by military tax. Such a situation is unacceptable.”
The note emphasizes that the introduction of additional obstacles to the circulation of currency in the form of the military tax (in addition to the contribution to the pension fund) leads to extremely negative consequences for Ukraine's economy: significant increase in transactions with foreign cash and precious metals on the black market.
This strips the budget of pension fund contributions; impedes the operation of banking market with payment documents; reduces offer of cash and non-cash foreign currency; and causes artificially high value of currency for individuals, the note reads.