Communities should receive compensation for withdrawal of military personal income tax – head of Odesa district council

On November 8, Ukrainian parliament voted for a draft law that redirects personal income tax of the local military personnel to the state budget instead of local one.

This was announced at a briefing at the Ukraine-Odesa Media Center by Vitaliy Barvinenko, chairman of the Odesa District Council.

“Foremost, in my opinion, this is an absolutely absurd decision, especially in the part that the seizure took place starting October, 1, retroactively. On November, 8, the law was voted, it signed by the President on November 15. However, the funds that were raised from military personal income tax should be transferred starting from October, 1. In fact, we have reached a large gap in all local budgets,” said the head of the Odesa district council.

The vice president of the Ukrainian Association of District and Regional Councils emphasized that the Cabinet of Ministers of Ukraine has not yet provided a mechanism for compensation for the withdrawn tax. In his opinion, this will affect small communities that do not earn much money. For example, in the north of Odesa region.

“As for the local budget of Odesa, it may suffer by 10 percent. But there are a number of communities across Ukraine for which the withdrawal of these funds without a compensation mechanism will lead to significant problems with the financial support of the communities,” Barvinenko said.

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