The Ministry of Finance has admitted that the withdrawal of the “military” PIT from communities was an ineffective decision. More than half of the revenues were not used for the needs of the army.
This is reported by Dzerkalo Tyzhnia with reference to the Association of Ukrainian Cities, Censor.NET informs.
In January-July of this year, the main spending units used only 45% of the actual personal income tax revenues. This is evidenced by the data provided by the Ministry of Finance at the request of the Association of Ukrainian Cities.
“In total, in 2024, expenditures amounting to UAH 32 billion were made out of UAH 77.3 billion in revenues. Moreover, while military units systematically use funds, the Ministry of Strategic Industries was able to use “as much as” UAH 529 million during this period out of the UAH 25 billion allocated to it, which was withdrawn from communities to provide military units, which is 2%,” the Association said.
In addition, in 2023, the funds seized from communities were used by 65%. And while the Ministry of Defense used 100% of the funds, the State Special Communications Service used 0 hryvnias, the publication says.
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As you know, the “military” personal income tax was removed from community budgets in 2023, along with the “power” personal income tax.
The AUC insists: PIT should remain with communities.
“The position of the Association of Ukrainian Cities is unchanged. The war is not a reason to withdraw funds, but an incentive to pool them. The entire system of public authorities should work in unity for the victory of Ukraine. The personal income tax of all Ukrainian citizens, regardless of their place of work or service, should be equally distributed to community budgets for the purpose of prompt response to the needs of the military,” the AUC emphasizes.
Earlier, Kyiv Mayor and head of the Association of Ukrainian Cities Vitalii Klytschko said that the withdrawal of the “military” personal income tax from communities would reduce their ability to help the army and negatively affect the life support of cities, towns and villages.
Read more: Ministry of Finance plans universal declaration following Baltic countries’ example: Ukrainians will agree on what tax authorities have calculated