Despite the state of war, local budget revenues show a positive trend in the payment of personal income tax by businesses and public sector institutions.
As of December 1, 2023, compared to the corresponding period last year, the business sector of Lviv Oblast increased the amount of tax paid by 22%, while the budget sector reduced it by 2% (total tax increase – 9%). As the finance department explains, this is due to the fact that the tax on the salaries of the military is now included in the state budget, and not in the local budget. However, even without this factor, the positive progress of business in the specified context is noticeable.
In addition, the department notes that for seven months in a row, the monthly dynamics of tax payments by the business sphere exceeds the dynamics of the budget sphere. Starting from March, the monthly growth (up to the corresponding months last year) in the field of entrepreneurship is at least 20%. As a cumulative result, business entities improve this indicator starting from April 1. Considering that personal income tax is the main source of income for local budgets, these results are very important.
“As of December 1, we already have 16 territorial communities, the income tax of which is formed mainly (more than two-thirds) by business (according to the results of the first half of the year, there were 12 of them). In 34 communities, more than half of personal income tax comes from the field of entrepreneurship,” added Oleg Demkiv, director of the LOVA finance department.