New tax changes, which the government calls “historic,” will come into effect in Ukraine on December 1, 2024. The main goal of these reforms is to provide additional funding for the defense sector, as well as cover the state budget deficit.
Amendments to the Tax Code, which provide for an increase in taxes, will come into effect on December 1, 2024.
Prime Minister of Ukraine Denys Shmyhal stated this during a telethon.
According to Shmyhal, in the coming days, the relevant laws on amendments to the Tax Code and the state budget for 2025 will be signed by the president. This decision is one of the key elements of cooperation with international creditors.
"We have already asked the president to sign these laws as soon as possible. This is an important step for filling the budget, including defense spending items this year and next," Shmyhal emphasized.
The Prime Minister emphasized that over 60% of the state budget for 2025 will be directed to the security and defense sector. According to him, more than 2.2 trillion hryvnias will be spent on the needs of the army next year, which significantly exceeds the peacetime budget.
“We are receiving additional resources for the purchase of weapons, ammunition, as well as for paying salaries to employees of the Security and Defense Forces,” the Prime Minister added.
Laws that will soon come into force will increase state revenues to finance:
- procurement of modern weapons;
- providing the army with the necessary resources;
- payment of salaries to military personnel and employees of the Defense Forces.
Ukraine's international partners, including creditors, are insisting on tax reforms as a condition for further financial support. The government believes that new taxes will create the necessary basis for the stable functioning of the country's economy during the difficult time of martial law.
