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Ukraine’s recently passed Verkhovna Rada laws on supporting entrepreneurs by 2021 provide such support at the expense of local budgets, said the mayor of Kiev and the director of the Association of Ukrainian Cities, Vitali Klitschko.
Local budgets may lose 7.5 billion UAH, said the mayor of Kiev and the director of the Association of Ukrainian Cities, Vitali Klitschko. This was stated in his speech to the President of Ukraine, Volodymyr Zelenskyy, the spokesman for the Verkhovna Rada of Ukraine, Dmitry Razumkov and the heads of the parliamentary factions, published on December 10 on the association’s website.
“Ukrainian communities – villages, municipalities, cities – are concerned that in the laws recently passed by the Verkhovna Rada of Ukraine on supporting entrepreneurs by 2021, such support is provided at the expense of local budgets. In particular, to starting next year, the inscription in the local budgets of one part, 44%) tax on the consumption of fuel produced in Ukraine and imported into the customs territory of Ukraine As a result of this decision, the communities will lose 7.5 billion UAH. ..
Klitschko said that the deduction of part of the excise tax on fuel in local budgets began in 2015 as compensation for a decrease in income from personal income tax from 75% to 60%, as well as for the abolition of subsidies for public road services and a number of other taxes.
“The abolition of the local fuel tax will have critical social consequences for the people of Ukraine. Communities will lose a reliable source of income for local budgets during the economic crisis caused by the pandemic and, as a result, the ability to maintain educational institutions. and health care; fund teachers, educators, and physician salaries; conduct the procurement of medicines and medical equipment needed today to help COVID-19 patients. In fact, for many communities, the special fuel tax it contributes up to 50% of the income to local budgets ”, said the mayor of the capital.
He called on the main leaders of the country to permanently support the inclusion of 13.44% of the special tax on fuel produced in Ukraine and imported into the customs territory of Ukraine in the general fund of local government budgets. .
“I am convinced that this will prevent the growth of the local budget deficit and help to ensure the financial viability of local self-government as an achievement of decentralization,” summed up Vitali Klitschko.
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