In December, food prices in Ukraine will sharply rise due to increased taxes

A sharp increase in food prices is expected in Ukraine in December due to a “historic” tax hike.

This has been reported by local media.

Earlier, Verkhovna Rada deputy Yaroslav Zheleznyak announced that President Volodymyr Zelensky had signed a law introducing the “historic” tax increase in Ukraine.

“Due to the ‘historic’ tax hike in Ukraine, food prices will rise significantly in December. The main reason is that businesses will have to account for the tax increases. According to forecasts, the cost of vegetables will rise by up to 15%, fruits by 10%, meat by an average of 9%, and dairy products by 14%,” Zheleznyak stated.

Media reports suggest that fuel prices are likely to remain stable.

On October 10, Zheleznyak had announced that the Ukrainian parliament had approved the bill for the “historic” tax hike and forwarded it to Zelensky for signature.

The law includes an increase in the military tax from 1.5% to 5%, as well as raising the corporate tax rate for banks to 50%. Previously, Ukraine’s Finance Minister Serhiy Marchenko stated that sources for increased funding of the Armed Forces had been exhausted, leaving the country with no choice but to raise taxes.

Ukrainian media, citing a document from the Verkhovna Rada’s Main Legal Department, reported that the tax hike law does not comply with constitutional norms. Specifically, the legal department concluded that the proposed method of paying tax advances violates the principle of equality among taxpayers. Additionally, it was noted that the provision to retroactively apply taxes for October contradicts the constitutional article stipulating that laws cannot have retroactive effect.