City authorities ask to reduce the single social contribution to 10% and introduce a special regime
On October 21, the Kharkiv City Council appealed to the state leadership with a proposal to introduce special conditions and benefits to support business in the frontline city. The initiatives include reducing the single social contribution for employers from 22% to 10%, lowering the military tax for employees to 1.5%, and establishing a special tax regime. This was reported by Minfin citing Oleksandr Chumak, according to the portal PromPolitInform.
The document with proposals has been sent for consideration to the President of Ukraine, the Verkhovna Rada, the Cabinet of Ministers, and the National Bank of Ukraine. The initiative is the result of joint work between city authorities and the local business community.
The package of proposals provides for a reduction in the tax burden on enterprises that continue to operate in conditions of constant proximity to the frontline. Specifically, it involves cutting the single social contribution rate for employers from 22% to 10% and reducing the military tax for employees to 1.5%.
Support and compensations for the frontline region
In addition to lowering national tax rates, the document contains initiatives regarding the compensation of municipal budget losses by the central government. Such compensation is envisaged if the city grants additional exemptions from land tax and a set of local property taxes.
A separate point proposes introducing special lending conditions and expanding local entrepreneurs’ access to state support programs. The necessity of improving existing mechanisms for insuring and compensating potential military risks for business is also emphasized.
Energy resilience and budgetary priorities
Additionally, it has been proposed to develop a special state program for the energy resilience of enterprises. It should ensure the stable operation of companies amid constant power supply disruptions caused by shelling.
Another important requirement is the priority processing of treasury payments for enterprises from Kharkiv. «Enterprises that continue to work in Kharkiv must receive special conditions of state support», stated Oleksandr Chumak.
The appeal adopted by the city council does not automatically introduce tax privileges yet. Negotiations with central authorities lie ahead to turn these initiatives into real mechanisms.
Photo: Minfin
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