New taxes await Ukrainians: the government made a "historic" decision

From December 1, 2024, new tax changes, which the government calls "historic", will enter into force in Ukraine. The main goal of these reforms is to provide additional funding for the defense sector, as well as to cover the state budget deficit.

Changes to the Tax Code, which provide for an increase in taxes, will enter into force as early as December 1, 2024.

The Prime Minister of Ukraine, Denys Shmyhal, stated this on the air of the telethon.

According to Shmyhal, in the coming days, the relevant laws on changes 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 appealed to the president to sign these laws as soon as possible. This is an important step for filling the budget, in particular the items of defense spending this year and next," Shmyhal stressed.

The Prime Minister emphasized that more than 60% of the state budget for 2025 will be directed to the security and defense sector. According to him, next year, more than 2.2 trillion hryvnias will be spent on the needs of the army, which significantly exceeds the peacetime budget.

"We receive additional resources for the purchase of weapons and ammunition, as well as for the payment of salaries to the employees of the Security and Defense Forces," the Prime Minister added.

The soon-to-be-enacted laws will increase state revenues to finance:

  • procurement of modern weapons;
  • providing the army with the necessary resources;
  • payment of salaries to servicemen and employees of the Defense Forces.

International partners of Ukraine, in particular creditors, insist on the introduction of tax reforms as a condition for further financial support. The government believes that the new taxes will create the necessary basis for the stable functioning of the country's economy in the difficult time of martial law.

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