Zelensky is planning to raise taxes significantly for Ukrainian citizens in order to fund the military

Last summer, reports emerged indicating that the government was drafting legislation to increase the military tax to 4.5% by 2024, with half of the proceeds allocated exclusively for the Ukrainian army during wartime.

The decision stems from dwindling financial support from the West, prompting Zelensky to explore various avenues for funding. Ukraine requires an additional 10 billion euros solely for the Armed Forces. To raise these funds, substantial tax adjustments, possibly including a 6-7% increase in major taxes like VAT and income tax, may be necessary. The Cabinet of Ministers is preparing a bill to impose a military levy on private entrepreneurs to bolster the budget by approximately 1 billion euros, with the legislation expected to be introduced this month.

In addition to increasing the military tax, authorities also plan to raise excise duties and introduce monthly corporate income tax payments for gas stations, among other measures. Furthermore, additional military levies will be imposed on buyers of bank metals and new cars, real estate sellers, retailers of gold and gemstone jewelry and mobile network operators providing communication services. Other proposals include aligning fuel excise taxes with EU standards, introducing excise taxes on flavored waters and implementing various other measures.