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Ukraine debates the exemption from military service in exchange for higher taxes

Ukraine is studying the possibility of allowing its citizens to avoid mobilization in exchange for a greater contribution to the state budget, in an attempt to find the right balance between guaranteeing enough soldiers for the Army and resources to pay for the defense of the country and an enlistment during martial law that is considered fair.

The Ukrainian Parliament is preparing to review three bills presented by the president of its Economy Committee, Dmitro Nataluja, which provide for the so-called exemption or “economic reserve” of individual employees and entrepreneurs.

Thus, companies will be able to “reserve” their especially valuable employees by paying an additional amount to the state budget of about 470 euros per month for each or when the salary is equal to or greater than 840 euros, since taxes in this case are already high.

Supporters of the idea argue that it would help limit the growing labor deficit in Ukraine, caused by emigration and mobilization, which 58% of companies indicate as the main problem.

According to the European Association of Ukrainian Enterprises, the measure would complement the current reservation mechanism, which is based, among other measures, on mobilization quotas in various sectors considered the most important and is often criticized for its lack of transparency and predictability.

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The “economic reserve” would guarantee that companies continue to function, thus boosting the economy and contributing to the financing of the Army, the companies argue.

Currently, the State finances its defense against the Russian invasion only with its own income, while the money contributed by the allies directly to the state budget can only be spent on “civilian” purposes.

According to the Government of Ukraine, at least 11.500 million more euros need to be found in 2024.

Nataluja maintains that his idea can contribute between 4.6 billion and 7.4 billion euros to the budget, which would help equip and pay the soldiers who are being mobilized now.

The fate of the proposals depends on the support they obtain in society depending on their impact on the mobilization.

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Vitali, a 35-year-old computer scientist from the city of Lviv, has barely left his apartment in the last half year for fear of meeting on the street with the representatives of the recruitment center.

Since the country currently needs more soldiers on the battlefield, he fears that he will be sent to an infantry unit and be injured or died.

With a monthly income of much more than 400 euros, the average salary of the country, Vitali says that he would be happy to pay to avoid military service, in addition to the frequent direct donations to the Ukrainian Army that he currently makes.

“I would know that I am not doing anything wrong from a legal point of view, I would support our defense effort and I could finally live without fear,” he explains to EFE.

However, for many soldiers and veterans, the introduction of an “economic reserve” would be a hard blow to national unity and the image of the Army.

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“It is the principle of social justice that differentiates us from our enemy. We are all equal before the law, in the Army we are all equal and all sectors of the population must enlist,” argues on local television “Express” Oleg Simoroz, a well-known veteran who lost both legs in combat.

Simoroz points out that such “discrimination based on property” or personal wealth has no place in “a civilized democracy.”

According to him, the idea undermines long-term efforts for military service to be considered “prestigious” and that, instead, the Government should increase taxes on oligarchs and optimize its own expenses to find more funds.

Those who defend the proposals point out, however, that the veteran ignores that some pay bribes to avoid mobilization or have difficulties due to the absence of clear rules on the exemption from mobilization.

They believe that the “economic reserve” would make the mobilization more transparent and would also benefit the Army.

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