From December 1, 2024, Ukrainians will experience a decrease in their legal income due to an increase in military tax to 5%. This is provided for by a new law signed by President Volodymyr Zelensky on November 28, which was approved by the Verkhovna Rada on October 10. People's Deputy Nina Yuzhanina spoke about the changes in taxation on the air of the Kyiv24 TV channel.
According to the new legislation, the military levy on legal income of Ukrainians is increasing from 1.5% to 5%. This applies to all types of income that citizens receive from work as employees, as well as interest on bank deposits.
“Absolutely, all income that you legally receive, whether it is wages or accrued interest on deposits, will be taxed at the military levy rate of not 1.5%, but 5%,” Yuzhanina said.
The People's Deputy also drew attention to the fact that Ukrainians should be prepared for a decrease in their "net" income. For example, if from December 1, citizens receive winter support in the amount of one thousand hryvnias, it will be a one-time benefit, but every month they will pay more taxes due to an increase in the military levy rate.
“When you go to receive a thousand hryvnias in assistance, remember that at the same time, the withholding from your income increases,” the deputy emphasized.
This law is set to come into effect on December 1, which will avoid technical problems with tax and salary accrual. However, it is worth noting that the transition period, which was supposed to last until November 29, has been lifted, and the changes will come into effect next month.
This tax increase has become part of the state's strategy to finance defense needs, but it also creates certain economic hardships for citizens who are already facing price increases and inflation.
