The draft law No. 2436 offers to abolish levying of military tax on foreign currency exchange transactions by individuals via exclusion of figures and signs “165.1.51” from Sub-Item 1.7, Item 161, Subchapter 10, Chapter XX of the Tax Code of Ukraine.
During the discussion, members of the Committee supported the draft law and noted that the introduction of the military tax with the Law of Ukraine No. 211-VIII “On introduction of amendments into the Tax Code of Ukraine” starting March 13, 2015 on operations with foreign currency values mentioned in Sub-Item 165.1.51, Item 165.1, Article 165 of the Tax Code of Ukraine was a mistake as during the exchange of one currency value for another one (foreign currency for local currency) it is the equivalent exchange that takes place and individuals do not receive any income. Instead, effective wording of Sub-Item 1.7, Item 161, Subchapter 10 of Chapter XX of the Tax Code of Ukraine recognizes whole value of the equivalent exchange as the object of military taxation.
Besides, the member of the Committee noted that existence of effective term of the Tax Code of Ukraine as to levying of the military tax on exchange transactions affects the market of foreign currency transactions and deeper destabilizes the financial market of Ukraine. Thus, the problem demands immediate settlement.
To this extent, people's deputies stressed that the draft law requires immediate consideration by the Verkhovna Rada of Ukraine.