Zelensky Raises Taxes for Ukrainians
Vladimir Zelensky has approved a new law aimed at raising taxes in Ukraine in response to growing budgetary pressures. Read Full Article at RT.com.
TroibNews 
Starting December 1, residents of Ukraine will face a tax increase of between 1.5% and 5%, following a law signed by President Vladimir Zelensky on Thursday aimed at addressing the country's escalating budget deficit. This significant legislation was published on the Verkhovna Rada, Ukraine’s parliament, website.
The tax increase, which has faced considerable backlash from both opposition figures and the general public, secured parliamentary approval in October. This will be the first major tax hike since the conflict with Russia intensified, with a new 'war tax' also being imposed on entrepreneurs and small businesses.
The newly enacted law introduces a 50% tax on bank profits and a 25% tax on financial companies, among other provisions.
Yaroslav Zhelezniak, the deputy chair of the parliamentary finance and tax policy committee, termed the hike “historic,” voicing criticism over the delay in its signing. According to the Ukrainian constitution, the law is required to be signed within 15 days or face a veto.
Zhelezniak noted 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 calculated that each day of postponement costs the national budget 270 million hryvnias and estimated that the 44-day delay resulted in a 12 billion hryvnias loss from the army budget.
In October, lawmakers in opposition denounced the proposed tax hikes as “a shameful decision.” Aleksey Movchan, a member of Zelensky’s party, admitted that the bill was “unpopular” and that those who backed it would likely face public resentment.
On Thursday, Finance Minister Sergey Marchenko emphasized that the tax increase was crucial for ensuring adequate funding for Ukraine's defense sector in the coming year.
According to the minister, defense expenditures constitute roughly half of Ukraine's annual budget. The government has set the military spending target for next year at approximately 2.2 trillion hryvnias, which is in line with this year’s allocation.
In addition to the tax increases, Zelensky also enacted a bill that outlines the state budget for Ukraine in 2025, projecting expenditures of $87 billion and revenues of $49 billion, resulting in a significant overall shortfall of $37 billion.
Marchenko indicated that the approval of tax increases was essential for the financial program with Ukraine’s main lender, the International Monetary Fund. The government plans to address the deficit through financing from the IMF and the EU, as well as a $50 billion G7 loan supported by frozen Russian assets.
Navid Kalantari for TROIB News
The tax increase, which has faced considerable backlash from both opposition figures and the general public, secured parliamentary approval in October. This will be the first major tax hike since the conflict with Russia intensified, with a new 'war tax' also being imposed on entrepreneurs and small businesses.
The newly enacted law introduces a 50% tax on bank profits and a 25% tax on financial companies, among other provisions.
Yaroslav Zhelezniak, the deputy chair of the parliamentary finance and tax policy committee, termed the hike “historic,” voicing criticism over the delay in its signing. According to the Ukrainian constitution, the law is required to be signed within 15 days or face a veto.
Zhelezniak noted 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 calculated that each day of postponement costs the national budget 270 million hryvnias and estimated that the 44-day delay resulted in a 12 billion hryvnias loss from the army budget.
In October, lawmakers in opposition denounced the proposed tax hikes as “a shameful decision.” Aleksey Movchan, a member of Zelensky’s party, admitted that the bill was “unpopular” and that those who backed it would likely face public resentment.
On Thursday, Finance Minister Sergey Marchenko emphasized that the tax increase was crucial for ensuring adequate funding for Ukraine's defense sector in the coming year.
According to the minister, defense expenditures constitute roughly half of Ukraine's annual budget. The government has set the military spending target for next year at approximately 2.2 trillion hryvnias, which is in line with this year’s allocation.
In addition to the tax increases, Zelensky also enacted a bill that outlines the state budget for Ukraine in 2025, projecting expenditures of $87 billion and revenues of $49 billion, resulting in a significant overall shortfall of $37 billion.
Marchenko indicated that the approval of tax increases was essential for the financial program with Ukraine’s main lender, the International Monetary Fund. The government plans to address the deficit through financing from the IMF and the EU, as well as a $50 billion G7 loan supported by frozen Russian assets.
Navid Kalantari for TROIB News
