President of Ukraine Volodymyr Zelenskyy may face challenges related to popular discontent after the adoption of a new tax law that provides for tax increases. As The New York Times reports, this move could have serious social consequences in conditions where Ukrainians are already experiencing financial difficulties due to the ongoing war.
The paper notes that Ukraine's parliament has voted for the biggest tax increase since the war with Russia began more than two years ago, in a politically unpopular move to raise funds for a grueling military operation.
"This move is likely to hit Ukraine hard, where people have already felt a sharp drop in their economic well-being due to the conflict," the publication said.
The publication reminds that the law increases the military tax on the income of individuals from 1.5% to 5%. In addition, he retroactively doubles bank profits taxes to 50% this year and raises taxes on other financial institutions.
Oleksiy Movchan, deputy chairman of the economic committee of the Rada, admitted in a comment to the publication that the draft law is "unpopular".
"We will be hated, but we have no other choice. It is about our survival in this war," he said.
The NYT writes that the need to strengthen the state budget has only increased in recent months, as Ukrainian troops are constantly losing ground on the battlefield in the east of the country, and military and financial support for Kyiv risks shrinking due to war fatigue in the West.
"On Thursday, Zelenskyi embarked on a tour of European capitals to urge foreign allies to increase their support... But when Zelenskyi returns home, he may have to face the wrath of his own population for raising taxes, an unpopular measure in any country, but especially in to a country whose economy has been destroyed by the conflict," the article reads.
