12 May 2016, 15:50
The Committee at its meeting on May 11 examined the draft law No.4543, submitted by the Cabinet of Ministers of Ukraine.
The draft law proposes to amend Articles 1, 7 and 8 of the Law on the State Budget of Ukraine for 2016 and to Annexes Nos. 1, 3, 6, 7 and 8 of the Law, following which it is envisaged to increase revenues and expenditures of the state budget (in total and in the general fund) by UAH 6,675.56 million (an average of 1%).
First of all, in order to compensate the citizens for the changes in floor retail prices for natural gas for household consumers and producers of thermal energy, the draft law proposes to increase by UAH 5,269 million (or by 15%) subvention from the state budget to local budgets for granting of benefits and housing subsidies for electricity, natural gas, heat, water supply and drainage, rent (maintenance of houses and constructions and adjusting territories), removal of household waste and liquid sewage.
At the same time, the draft law proposes to increase minimum subsistence level and minimum wage from December 1 by 3.2% compared with the already set as at this date / minimum subsistence level: per person per month - from UAH 1496 to UAH 1544; children under 6 years old - from UAH 1313 to UAH 1355; children from six to 18 years - from UAH 1637 to UAH 1689; for able-bodied persons (minimum wage) - from UAH 1550 to UAH 1600; for persons unable to work - from UAH 1208 to UAH 1247 / with corresponding increase of expenses for payment of wages and salaries, accruals on wages, pensions, aid to families with children and one-time assistance, scholarships of post-graduates and doctoral candidates, etc.
In order to level the indicators of the state budget, the draft law proposes to increase such revenues of the state budget’s general fund (which is explained with an increase in prices for natural gas for household consumers and producers of thermal energy): corporate income tax - by UAH 1,234 million; rental fee for the use of subsoil for the production of natural gas - by UAH 3,753 million; value added tax on goods made in Ukraine (works, services) subject to compensation from the budget – by UAH 2,122 million.
However, the draft law provides for the reduction of revenues of the general fund of the state budget from income tax for individuals by UAH 433.4 million. The above is explained with an increase of the minimum wage by UAH 50 from December 1, 2016 (which will increase wage and salary budget) proposed in the draft law, and proposals concerning the abolishment of taxation of pensions. In particular, the government’s draft law on amendments to the Tax Code of Ukraine concerning the exemption of pensions from taxation No.4542 proposes to from May 1, 2016 remove provisions on 15% taxation of the amount of pensions or lifetime monthly allowance if their size exceeds three minimum wages, in the part of such an excess.
Following the consideration, the Committee decided to recommend that the Verkhovna Rada following the examination in the first reading approve the government's draft law as a basis and in principle taking into account the proposals of the Committee presented in its letter of opinion.