The OPPOSITION BLOC insists on the need for amending the legislation, according to which the tax on personal income will be paid at the place of registration of the individual. This was stated by MP from the OPPOSITION BLOC Artur Martovytskyi during a briefing in the Verkhovna Rada.
According to him, the chronic lack of funds and the instability of sources of income have become a huge problem for local governments in Ukraine. “The most painful problems of people are not being solved on the local level, the urban economy and the socio-cultural sphere are in decline, the road conditions and other communications of the city infrastructure are deteriorating,” the oppositionist noted.
Artur Martovytskyi said that as a result of the reform of the local self-government, local budgets were given expenses that in most cases were not secured by income. As a result – the inability of a large number of communities to provide themselves in full.
“The financial problems of the local authorities are not solved at all. Instead, funds are withdrawn from local budgets to the state budget, which in recent years has tripled.
In such circumstances, attention should be paid to income tax, which in its value is the main budget-forming tax for local budgets. Adequate occupancy rate of local budgets allows local communities to fully carry out their functions,” the oppositionist noted.
According to Artur Martovytskyi, as a result of the crisis, residents of some localities are not able to find a job at the place of residence and are forced to seek work in other cities, while living and using services in the territory of the communities where they are registered.
“In accordance with the current legislation, the tax on income assessed to employees of a separate division is transferred to the relevant budget at the location of such a separate division. This principle of enrolling personal income tax leads to chronic underfunding of local budgets of territorial communities that are donors of labor force,” the parliamentarian said.
“For example, in the city of Pavlohrad in Dnipropetrovsk Oblast a significant number of the working-age population of the city works in the mines of “DTEK Pavlohradugol” CJSC, which are located outside the city of Pavlohrad. That is, there is a situation in which a settlement with the relevant enterprise receives a tax on the income of individuals of all its employees; and the city budget, due to which the whole range of social services is provided to individuals residing in the respective locality, does not receive anything. The loss of the budget of this tax per year is about UAH 200 million,” the oppositionist said.
In addition, according to Artur Martovytskyi, on the territory of Pavlohrad there are objects of companies where the city residents work, but these companies pay personal income tax at the place of registration of tax agents – legal entities, mainly registered in cities – regional centers.
“The solution to this problem cannot be postponed, it needs a legislative settlement. The Verkhovna Rada is considering two draft laws that have been registered since July 17, 2015 “On Amendments to Article 168 of the Tax Code of Ukraine” (No. 2404) and “On Amendments to Article 64 of the Budget Code of Ukraine” (regarding the transfer of the tax on personal income to the relevant local budget at the taxpayer’s address – physical person (No. 2403). On February 7, 2019 they are included in the session agenda, but for some reason they are not put to the vote of the parliament,” the oppositionist noted.
Artur Martovytskyi appealed to the Head of the Verkhovna Rada demanding to bring these draft laws to the session hall as soon as possible.