KYIV: “Ukraine Proposes First Wartime Tax Hikes for Defense Funding”, On Thursday, July 18, Ukraine’s government put forth its first wartime tax increase aimed at generating billions of dollars to bolster military capabilities and support soldier salaries. This move comes as Ukraine continues to grapple with the prolonged conflict with Russia, which has now entered its 29th month.
At its weekly meeting, Ukraine’s government approved draft changes to the 2024 budget law, allocating an additional 495.3 billion hryvnias (US$11.9 billion) to defense spending, according to government officials and lawmakers. The move underscores Ukraine’s commitment to bolstering its military capabilities amid ongoing tensions with Russia.
The government also proposed an increase in taxes and other duties, ranging from a war tax paid by its residents to introducing additional duties on some imports and raising excise duties for fuel.
“The full-scale war is now in its third year, and the needs in the security and defence sector are growing,” the finance ministry said in a statement.
To be able to channel more funds to the army, the government proposed various tax increases, planning to raise 140 billion hryvnias in additional revenue.
