Kim: money from the military personal income tax will go to the creation of weapons, and Mykolaiv budget is «equalized» to the level of 2021

The personal income tax (PIT), which comes from the incomes of military personnel, is planned to be directed in its entirety to the creation of domestic weapons.

This was stated by the head of Mykolaiv regional military administration (RMA) Vitaly Kim during a briefing on September 18, commenting on the draft law, which is supposed to direct all revenues from the personal income tax of military personnel, 64% of which currently remain in local budgets, to the state budget, writes «NikVesti».

It is about 25.8 billion hryvnias this year and 93.7 billion hryvnias next year. The budget of Mykolaiv will thus lose 2.7 billion hryvnias, the mayor of the city Oleksandr Sienkovych said.

— In the Mykolaiv oblast, 42% were tax payers, there were 9 brigades in Mykolaiv. And at the moment, when there is an overrun of budgets due to the personal income tax, non-proprietary income for the communities, including communities that sometimes housed military units, and the personal income tax was partially returned to increase the defense capability of this unit. The law will lead to the fact that 100% of the taxes paid by the military will go to the creation of domestic weapons. Therefore, I fully support it, despite the fact that it is very difficult for us and that we are a frontline region and have lost a lot. I believe that everyone will support the idea that victory is the fastest, and then we will catch up with everything else, — said Vitaly Kim.

Vitaly Kim, head of Mykolayiv OVA. Photo of the press service

He emphasized that he fully supports the idea of removing the military personal income tax from local budgets in the event that all the money will go to the domestic construction of weapons and ammunition.

According to him, as a result, local budget revenues will return to the level of 2021. The Mykolaiv region, where the number of working companies and entrepreneurs has decreased, will receive a corresponding return subsidy from the state budget, noted Vitaliy Kim.

— But at the same time I will add that, understanding, for example, Ochakiv, in which about 90% of the budget is personal income tax. The government announced that there will be equalization grants that will return the level of taxes in 2021 plus the increase in social standards and utilities. Our region will receive part of the 32 billion hryvnias that the government has earmarked as a reverse subsidy to those regions that need it. Our communities and the region will receive a return subsidy according to the calculated formula, — said Vitaly Kim.

It was previously reported that Mykolaiv joined the appeal of the «Association of Cities of Ukraine» to the President of Ukraine, the Verkhovna Rada and the Cabinet of Ministers with a request not to take personal income tax from military income from city budgets.

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At the same time, this issue was considered at a meeting of the budget commission of the Mykolaiv City Council. The Department of Finance predicted next year's budget in the amount of 5.7 billion hryvnias, while 2 billion 700 million is personal income tax from the military.

Deputy of the city council Serhii Kantor believes that the mayor Oleksandr Sienkovych should present an «action program» after the government withdraws personal income tax from military income from the city budget.

Deputy Oleksandr Bereza stated that under such conditions, it will be difficult to provide an item of expenditure in the budget aimed at the development of the city, and Deputy Artem Ilyuk believes that in this case the city will have to include the economy mode and look for additional income.

People's Deputy of Ukraine Maksym Dyrdin, who represents the Mykolaiv region in the parliament, said that it is possible that a certain percentage of the military personal income tax will remain in the communities.