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MOSCOW (Sputnik) – A new controversial tax law went into effect in Ukraine on Saturday raising the military tax to 5% from 1.5%, and the tax on bank profits to 50%.
The move is aimed at replenishing the financing for the Armed Forces of Ukraine, which have been exhausted, as stated by Finance Minister Sergii Marchenko.
Ukrainian media have reported that the parliament’s chief legal directorate has drafted a document in which it says that the new law is unconstitutional. According to the document, the proposed format for paying advance tax contributions does not comply with the principle of equality of all taxpayers before the law. The document also states that the norm on calculating taxes for October retroactively contradicts the article of the constitution that the law must not have retroactive effect.
Member of Parliament Alexei Goncharenko* has slammed the law as «shameful,» warning that tax raises will lead to job cuts, business closures and a decrease in the income of Ukrainians.
*on the Russian list of terrorists and extremists
