Vodafone Ukraine: 5% military tax on mobile services to lead to double taxation
Mobile operators will find themselves in a situation of double taxation if a 5% military tax is introduced.
This opinion was voiced by the press service of the second largest mobile operator in Ukraine, PrJSC Vodafone Ukraine.
"We consider the introduction of such a tax unfair, given that we already pay a military tax, like all other businesses. In fact, we are talking about double taxation of mobile operator services, which in no way can be considered 'luxury items' along with precious metals and new cars," the operator's press service said in response to a request from Interfax-Ukraine.
It is indicated that in 2022-2023, the operator paid about UAH 11 billion in taxes and fees.
"The increase in military tax to 5% will certainly affect our financial obligations, but we will be able to determine the exact amount that the company will pay after the increase in taxes after completing internal assessments," the press service said.
Vodafone Ukraine also reported a significant additional investment burden to ensure stable network operation during long blackouts.
"In order to get closer to the requirements of the National Center for Operations and Technology Management of Telecommunications Networks to ensure ten hours of operation during a power outage, the company must additionally invest billions of hryvnias in autonomous power supply systems in addition to the funds previously invested," the company said.
A military tax of 5% on mobile communication services for end users is introduced by government bill No. 11416 On amendments to the Tax Code of Ukraine and other Laws of Ukraine on specifics of taxation during martial law."