Zelensky Increases Taxes
Vladimir Zelensky has approved legislation to raise taxes in Ukraine as the country faces increasing budgetary pressures. Read Full Article at RT.com.
TroibNews 
Rates will increase by between 1.5% and 5% starting December 1.
Ukraine’s President Vladimir Zelensky enacted a controversial tax increase on Thursday aimed at addressing the nation’s expanding budget deficit. The relevant law was made available on the website of the Verkhovna Rada, Ukraine's parliament.
This legislation, which has faced considerable backlash from both opposition leaders and the public, received parliamentary approval back in October.
This marks the first major hike in taxes since the escalation of the conflict with Russia, requiring individuals to contribute an additional 1.5% to 5% of their incomes. A new ‘war tax’ will also be applied to entrepreneurs and small businesses.
Additionally, the law imposes a 50% tax on bank profits and a 25% tax on financial companies, among other provisions.
The new tax structure will come into force on December 1.
Yaroslav Zhelezniak, deputy chair of the parliamentary finance and tax committee, termed the increase “historic,” while criticizing the delay in the law’s signing. Under Ukrainian constitutional law, the president is required to sign or veto legislation within 15 days.
Zhelezniak expressed on Telegram: “After dragging it out for 44 days …, [Zelensky] signed a historic tax increase. You may ask why they delayed it if they signed it anyway. … I don’t know. No one knows. Simply and without logic.”
He argued that each day of postponement costs the national budget 270 million hryvnias, calculating that the 44-day delay has resulted in a loss of 12 billion hryvnias from the military budget.
In October, opposition lawmakers criticized the proposed tax hikes as “a shameful decision.” Aleksey Movchan, a member of Zelensky’s party, acknowledged the bill’s unpopularity and remarked that lawmakers would be “hated” for passing it.
On Thursday, Finance Minister Sergey Marchenko stated that the legislation is crucial for ensuring proper funding for Ukraine’s defense sector in the upcoming year.
According to the minister, defense spending constitutes approximately half of the national budget. The government has set next year’s military expenditure target at around 2.2 trillion hryvnias, maintaining the same level as the current year.
Alongside the tax increase, Zelensky also signed into law a budget bill for Ukraine for 2025, projecting expenditures of $87 billion and revenues of $49 billion, resulting in a significant overall deficit of $37 billion.
Marchenko emphasized that the approval of tax hikes is essential for Ukraine’s financial program in partnership with the International Monetary Fund, a key lender for the country.
To address the budget deficit, Kyiv intends to secure financing from the IMF and the European Union, in addition to utilizing a $50 billion G7 loan backed by frozen Russian assets.
Sophie Wagner for TROIB News
Ukraine’s President Vladimir Zelensky enacted a controversial tax increase on Thursday aimed at addressing the nation’s expanding budget deficit. The relevant law was made available on the website of the Verkhovna Rada, Ukraine's parliament.
This legislation, which has faced considerable backlash from both opposition leaders and the public, received parliamentary approval back in October.
This marks the first major hike in taxes since the escalation of the conflict with Russia, requiring individuals to contribute an additional 1.5% to 5% of their incomes. A new ‘war tax’ will also be applied to entrepreneurs and small businesses.
Additionally, the law imposes a 50% tax on bank profits and a 25% tax on financial companies, among other provisions.
The new tax structure will come into force on December 1.
Yaroslav Zhelezniak, deputy chair of the parliamentary finance and tax committee, termed the increase “historic,” while criticizing the delay in the law’s signing. Under Ukrainian constitutional law, the president is required to sign or veto legislation within 15 days.
Zhelezniak expressed on Telegram: “After dragging it out for 44 days …, [Zelensky] signed a historic tax increase. You may ask why they delayed it if they signed it anyway. … I don’t know. No one knows. Simply and without logic.”
He argued that each day of postponement costs the national budget 270 million hryvnias, calculating that the 44-day delay has resulted in a loss of 12 billion hryvnias from the military budget.
In October, opposition lawmakers criticized the proposed tax hikes as “a shameful decision.” Aleksey Movchan, a member of Zelensky’s party, acknowledged the bill’s unpopularity and remarked that lawmakers would be “hated” for passing it.
On Thursday, Finance Minister Sergey Marchenko stated that the legislation is crucial for ensuring proper funding for Ukraine’s defense sector in the upcoming year.
According to the minister, defense spending constitutes approximately half of the national budget. The government has set next year’s military expenditure target at around 2.2 trillion hryvnias, maintaining the same level as the current year.
Alongside the tax increase, Zelensky also signed into law a budget bill for Ukraine for 2025, projecting expenditures of $87 billion and revenues of $49 billion, resulting in a significant overall deficit of $37 billion.
Marchenko emphasized that the approval of tax hikes is essential for Ukraine’s financial program in partnership with the International Monetary Fund, a key lender for the country.
To address the budget deficit, Kyiv intends to secure financing from the IMF and the European Union, in addition to utilizing a $50 billion G7 loan backed by frozen Russian assets.
Sophie Wagner for TROIB News
