Ukrainian authorities are preparing to increase taxes for individuals and businesses

The initial focus is on individual entrepreneurs, who will face a new military levy of one and a half percent, as proposed by Danil Hetmantsev, head of the relevant committee in the Verkhovna Rada.

The government aims to introduce a draft law in parliament to generate additional revenue for the budget with a target of over one billion euros. This move is in line with the updated memorandum with the IMF, which requires Ukraine to identify sources for increasing the budget by at least 0.5% of GDP, a task supposed to be accomplished by the end of February 2024. Moreover, given the uncertainty surrounding Western assistance, the government seeks additional revenue streams to bolster the treasury.

To achieve this goal, the Ministry of Finance has put forward various proposals, including imposing additional taxes on the purchase of bank metals, registering vehicles, selling real estate and jewelry, as well as implementing excise taxes on sweetened and carbonated mineral waters. Additionally, mobile operators may face additional fees and fuel excise taxes might be raised to match minimum European rates. If implemented, these measures will lead to increased financial burdens not only for businesses but also for all Ukrainian citizens.