What countries other than Ukraine have introduced military tax: international experience
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As of today, the amount of the military tax in Ukraine is one of the lowest introduced in the world. However, the government plans to increase it from 1.5% to 5%. Find out in which other countries citizens pay military tax and what amounts are involved
Amid the war, the Ukrainian government plans to raise taxes to cover the state budget deficit and finance defense spending. We will tell you more about other countries that use military taxes for similar purposes with reference to the infographic by Slovo i Dilo.
Read more about the amount of Ukraine's public debt and the debt it must repay in the next 26 years in this article.
History and current situation in Ukraine
Since the beginning of the russian aggression in 2014, Ukraine has introduced a military tax of 1.5% of income. The tax is payable by resident individuals earning income in Ukraine and abroad, non-resident individuals earning income in Ukraine, and tax agents. Despite the government's repeated proposals to double the rate, it has remained unchanged until now. However, the government now plans to increase this fee to 5%, as well as to raise the VAT to 23%.
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Military taxes in other countries
Military taxes are not unique to the world. Many countries in different periods of history have introduced special taxes to finance military expenditures, in particular during armed conflicts. Among these countries:
– Colombia and Sri Lanka: in these countries, the military tax rate is 4%.
– Bosnia and Herzegovina, Cyprus, El Salvador, Croatia: the military tax rate is 3%.
– Angola, Burundi, Guinea-Bissau, Eritrea, Egypt, Israel, Iraq, India, Mozambique, Nigeria, Nicaragua, Pakistan, Syria, Sudan, Chad: in these countries, the military tax rate is 2%.
In some countries, the military tax is even lower than the Ukrainian one. For example:
– Ethiopia, Indonesia, Iran, Cambodia, Liberia, Libya, Mauritania, Morocco, Peru, and Portugal: the military tax rate is only 1%.
International experience shows that military taxes can be an effective tool for raising the necessary financial resources, but at the same time, they often spark debate about their fairness and economic impact. For example, in high-income countries, a military tax may have little impact on the welfare of citizens, while in lower-income countries it can result in a significant financial burden on the population.
At the same time, comparisons with other countries show that military tax rates can vary widely, depending on specific needs and economic conditions.
Therefore, raising the military tax in Ukraine to 5% can provide significant additional revenue to finance defense and generally improve the country's defense capability, but not without economic consequences for citizens and businesses.
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We remind you! Western countries are increasingly taking a more decisive approach to the issue of their military's activities directly on the territory of Ukraine. Some NATO members are advocating for a shielding of the western part of Ukraine from russian missiles. Read about the discussions within the Alliance and who is ready to take a significant step forward in helping Ukraine in our previous article.
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