Draft bill #11264 of May 16, 2022 

Sponsor: MP from Servant of the People faction Serhii Hryvko 

Status: withdrawn 

Who is affected: citizens of Ukraine 

Summary: 

The “childlessness” tax: 

  • the “childlessness” tax, or demographic tax, is proposed as a temporary measure that will apply to Ukrainian citizens aged 21 to 58 until the demographic reform is completed 
  • exceptions to the tax: 
    • people with three or more children 
    • people with infertility or impaired reproductive function making parenthood impossible. Every two years it will be required to confirm this condition 
    • people with group I disability 
  • taxable income exclusions: 
    • income of private entrepreneurs and self-employed persons 
    • incomes of service members, law enforcement officers, and special service employees 
    • funding received by volunteers and are used exclusively for charitable activities 
    • funds received from the redemption of domestic government loan bonds 
    • deposit payments 
    • the sale of real estate and vehicles 
    • charitable donations 
    • loans and funds returned under loan agreements. 
  • proposed tax rates: 
    • 1,5% of income for childless people 
    • 1% of income for people with one child 
    • 0,5 % of income for people with two children. 

Financial assistance for children up to 6 years old: 

  • paid monthly to one parent until the child turns 6 
  • the amount of assistance will be equal to the subsistence minimum for children under 6, as set by law on January 1 of the reporting year (as of January 1, 2024, 2,563 UAH) 
  • money will be sent to a card, and it will be allowed to spend it only on children’s goods (food, diapers, toys, medicines, etc.) in specialized stores or facilities. 

Assistance for a child turning 18 years old: 

  • one-time state assistance will be credited to a deposit account opened in the child’s name at a state bank, amounting to 25 subsistence minimums for children under 6, as of January 1 of the child’s birth year. For example, a child born in 2024 would receive 64,075 UAH in the deposit. With deposit interest, these funds would be available on the child’s 18th birthday 
  • the child will be able to access the assistance money before turning 18 in the following cases: 
    • treating a severe illness 
    • loss of housing due to natural disaster or war 
    • paying for higher education. 

Preferential loans for families with children: 

  • will be funded by the government budget and/or specialized state funds 
  • preferential long-term state loans for the construction or purchase of a house, membership fees for housing cooperatives, car purchases, and entrepreneurial activities. Only one family member will have the right to a preferential loan, including the possibility of interest-free mortgages for purchasing housing. 

Assistance for women awarded the honorary title Mother-Heroine: 

  • provided in the amount equal to the subsistence minimum for able-bodied persons, as set by law on January 1 of the tax (reporting) year. 

What is right: families with children will get more support. 

What is wrong: extra taxation of people for not having children is discriminatory. It is also unfair to people who cannot or do not want to have children for various reasons. Moreover, the state should not interfere in personal matters like a decision to have children. 

More importantly, demography is not only about childbirth issues. It involves a complex set of problems with intricate casual relationships. Therefore, they cannot be resolved solely by financial incentives or taxes. 

Additional information: 

Ok, So What? podcast, ep. 154: The Ministry of Social Policy will save demographics 

How to help the legislator: the Ministry of Social Policy has developed a draft strategy for the demographic development of Ukraine. Public discussion will last until June 1, 2024. Proposals and comments can be sent online or by mail: Ministry of Social Policy of Ukraine, 01601, Kyiv, Esplanadna Street, 8/10.