Page 41 - UKRRptSept23
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     Hetmantsev.
Shadow employment costs Ukraine's state budget UAH 100B every year.When Ukrainian employers do not declare their employment relationships and pay salaries in cash, the state budget of Ukraine loses revenue, which amounts to about UAH 100B ($2.73B) every year. "The shadow employment level reaches 9% of the employed population, said Andriy Kharchenko," a State Labor Service official. "The employer must understand that by creating new jobs, he can receive both state support and compensation," the official noted. Kharchenko emphasised that due to the war in Ukraine, scheduled and unscheduled compliance inspections were suspended, particularly with labour legislation. However, from June 16, 2023, by order of the Ministry of Economy, State Labor was allowed to conduct unscheduled inspections regarding undeclared work.
Third of state budget in 2023 used to pay soldiers. Around one-third of the state budget for 2023 so far – almost Hr 520 billion ($14 billion) – has been used for military personnel expenditures, Ukraine's Finance Ministry said on Aug. 16., referencing data from the State Treasury Service.
  6.1.2 Budget dynamics - specific issues...
    Ukraine to spend $48 billion on armed forces in 2023. Ukraine will spend Hr 1.8 trillion (about $48 billion) from the state budget on the defense and security forces in 2023, Prime Minister Denys Shmyhal said on Aug. 3.
Ukraine makes progress on the IMF beacons: the law restricting revisions to the state budget has been signed. President Volodymyr Zelenskyy has signed a law with amendments to the Budget Code to ensure budget policy predictability and strengthen debt sustainability. The law's passage represents the implementation of the tenth of the IMF's structural beacons and the launch of the implementation of beacon #12 - the review of the Medium-term Debt Management Strategy with a deadline for publication by the end of September this year. The law mandates that an expert opinion from the Ministry of Finance is submitted with each draft law on changes to the state budget and that such draft laws be considered in the Ukrainian Parliament if there are conclusions from the Ministry of Finance regarding their support. In addition, it restores the stricter conditions for amendments to the law on the state budget, defined by the article of the Budget Code, leaving an exception in martial law conditions for reviewing expenditures by the security and defense sector.
The Ukrainian Parliament has proposed a new tax for banks, providing UAH 10B to the budget. The parliament's tax committee is preparing a draft law that allows for additional taxation of net interest income or excess bank profits. "Most likely, the new law will come into effect in 2024 and bring UAH 10B to the budget annually," said Committee Chairman Danylo Hetmantsev. Parliamentarians are considering two options: a tax on all net interest income received in a year at a relatively low or moderate rate or a tax on the difference between the net interest income in the reporting year and the average of the last three to four years. Hetmantsev proposes introducing the tax temporarily on January 1, 2024, for two years, given the need for additional financing of defense costs. Notably, Ukrainian banks' profits for the first seven months of the year were UAH 83.2B. This is the highest figure for at least 15 years.
 41 UKRAINE Country Report September 2023 www.intellinews.com
 


























































































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