Parliament of Ukraine will raise social standards in December 2016.
Verkhovna Rada adopted the law on amendments to the state budget, envisaging an increase in social standards from 1 December to 10% instead of the previously planned 6%.
For the adoption of the Law “On Amendments to the Law “On the State Budget for 2016″(in relation to social standards and the scope of subvention for providing benefits and housing subsidies),” voted 248 deputies.
The increase in social standards above the level previously pledged will be financed by increasing plans on receipt of funds at the expense of the value added tax, as well as the expense of rent payments from production.
As noted in the explanatory note to the draft law, proposed to increase the minimum wage from 1 December 2016 to 1,600 UAH in 1550 against UAH, budgeted earlier. The subsistence minimum for able-bodied persons to grow up to 1600 UAH 1450 UAH today, for those who have lost the ability to work – to 1247 UAH 1130 UAH.
The document states that due to the increase in the minimum wage from 1 December 2016 to 50 UAH more than the previously forecast level set, as well as the abolition of taxation of pensions, the budget revenues due to the tax on personal income will decrease by 0.4 billion UAH.
To ensure the payment of pensions and allowances the amount of the state budget directed to the Pension Fund of Ukraine to pay pensions, proposed to increase to 576.9 million UAH – to 145.5 billion UAH.
In order to assist the most vulnerable segments of the population to pay for housing and communal services in the conditions of increasing prices for natural gas for the population is offered the total amount of subventions from the state budget to local budgets for provision of benefits and housing subsidies to the population for housing and communal services is further increased by 5 3 billion UAH – to 40.3 billion UAH.
At the same time, due to changes in gas prices for consumers, as well as an increase in social standards and the abolition of the taxation of pensions, the general fund of the state budget revenues will increase by 6.7 billion UAH.
By increasing the price of natural gas for domestic consumers and producers of thermal energy will increase income from corporate income tax – 1.2 billion UAH, Cost-added tax by 2.1 billion UAH, the rent for the use of subsoil for the extraction of natural gas – 3.8 billion UAH.
