In Ukraine, after the end of the war against Russia, the military tax will not be abolished, which has now been raised to 5%. However, once the war concludes and martial law is lifted, this increase will also be revoked, reverting back to the previous rate of 1.5%.
This was stated by the head of the Verkhovna Rada Committee on Finance, Taxation and Customs Policy, Danilo Hetmantsev, in an interview with Novosti.LIVE. According to him, the state currently cannot afford to give up a stable source of budget replenishment.
According to Hetmantsev, the military tax generated over 40 billion hryvnias for the state budget in the first 11 months of 2024. The increase of the military tax to 5% will enable the government to collect up to nine billion hryvnias per month for the country's budget. This increase will only remain in effect as long as martial law is in place.
"We implemented the increase only during martial law. If it ends, there won’t even be a need for any decisions to be made — those 3.5% that we raised will automatically drop. This is one of the two taxes that can quickly gather a lot of funds for the army," he assured.
As previously reported by "Telegraf", Ukraine's Finance Minister Serhiy Marchenko promised that after the law on tax increases is signed, gas prices in Ukraine will not rise. The amendments to the tax code are merely a lever for adjusting the taxation system, he noted.
Additionally, "Telegraf" previously wrote that due to increased taxes and inflation, winter will see a rise in prices for goods in Ukraine. Prices will not only increase for vegetables in the "borsch" set but also for other essential goods — pasta, cereals, bread, and more.