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Minister of Finance does not support preferential treatment of Diia.City

Minister of Finance does not support preferential treatment of Diia.City
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While the Ministry of Digital Transformation is actively promoting the "Diia.City" project, the Ministry of Finance seems poised to act as a stumbling block to this initiative. At the very least, Ukrainian Finance Minister Serhiy Marchenko is not in favor of the idea of preferential tax regimes, particularly the one involving "Diia.City."

"Some pay all taxes with 10,000 UAH, while others earning $5,000 or $10,000 do not pay taxes and think it's okay and normal, just because I'm a super genius... We aim to level out this system," said Serhiy Marchenko during the "New Country" event.

The Finance Minister emphasized that the Ministry’s stance regarding tax incentives remains negative and constant. However, once political backing is gained, matters can pass.

"This was actively discussed at the government meeting, and unfortunately, my voice was the only one saying that it's fundamentally about fairness," the minister added.

At the same time, he acknowledged that the government created these preferential rules, which might yield positive outcomes in the future.

"So far, there are no particular benefits for the state from this system. But in the future, there could potentially be," noted Serhiy Marchenko.

Recall that in the first six months of 2024, residents of "Diia.City" contributed more than 8.4 billion UAH to the Ukrainian budget. This is almost the same amount as for the entire year of 2023.

Meanwhile, leading associations of Ukraine's IT sector have expressed concerns regarding the potential tax increases for residents of "Diia.City." This could lead to a withdrawal of investments and business relocation. Industry representatives criticized Bill No. 11416-d, which proposes increasing the military levy to 5%, thereby violating previously guaranteed tax conditions. The Verkhovna Rada has already supported the tax hike in its first reading.

Source: dev

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