They will increase ‘retroactively’ from October 1. The Verkhovna Rada will not pass the law on tax increases in Ukraine until mid-autumn

Taxes in Ukraine will be raised retroactively this year, starting from October 1, although the law for the increase will not be passed until mid-October. Additionally, another tax hike is possible next year, including a Value Added Tax (VAT) increase if the state budget for 2025 undergoes significant changes in revenue and expenditure.

This information was reported by Member of Parliament Yaroslav Zheleznyak on his Telegram channel, citing a report from the Ministry of Finance.

The Tax Committee of the Verkhovna Rada has approved the government’s draft law on tax increases for a repeated first reading. The vote will take place in the coming days. Previously, the bill failed to pass due to insufficient votes.

The current version of the bill remains mostly unchanged, with the only addition being an increase in taxes on banks:

• Increase in the military levy from 1.5% to 5%;
• Increased taxes for individual entrepreneurs (sole proprietors) in groups 1 and 2;
• Advance payments at gas stations;
• 1% tax on all forms of sole proprietors in group 3;
• 25% tax on profits for financial institutions;
• 50% tax on bank profits in 2024.

The tax increase is expected to generate an additional 58 billion hryvnias this year and another 137 billion hryvnias (1.27 billion euros) next year.

It should be noted that the budget for the current year is being revised. The army is short of half a trillion hryvnias because the Cabinet of Ministers had assumed the war would end by summer. This is the reason behind the current push to pass the law on raising taxes.

For the next year, military expenditures are set at the current year’s level, taking into account these 500 billion hryvnias (10.9 million euros) from the outset.