The Ukrainian Cabinet of Ministers is preparing proposals to increase VAT and military tax. The exact figures are currently unknown.
Points of attention
- The Ministry of Defence needs additional funding of $5-10 billion, which could increase taxes.
- The government will soon announce further details regarding the new tax rates and their impact on Ukraine's economy.
- In addition, the authorities increased electricity tariffs for Ukrainians.
- Tax increases can have various socio-economic consequences, so it is important to monitor the government's future decisions.
The Ministry of Defenсe needs additional funding of $5-10 billion
The Chairman of the Committee of the Verkhovna Rada of Ukraine on Finance, Tax and Customs Policy, Danylo Hetmantsev, announced this.
The Cabinet of Ministers is currently preparing proposals for raising certain taxes. What will the new rates of VAT and military duty be? I can't talk about these numbers now. I can do it as soon as the Cabinet of Ministers forms them. The Cabinet has not given us anything yet, so there is nothing to discuss.
Danylo Hetmantsev
Chairman of the Parliamentary Committee on Finance, Tax and Customs Policy
This is because the Ministry of Defense needs additional financing for $5-10 billion, as well as possible problems with restructuring foreign debt.
The government has increased the electricity tax in Ukraine
The Cabinet of Ministers decided on the new electricity tariffs for domestic consumers in Ukraine.
As of June 1, Ukrainians will pay 64% more for electricity — UAH 4.32 per kWh. The corresponding decision was made during the government meeting on May 31.
The new tariff will be valid from June 1, 2024 to the end of April 2025, that is, less than a year.
There have also been changes for individual and collective household consumers who live in residential buildings (including hotel-type residential buildings and apartments) equipped with electric heating installations:
up to 2,000 consumed kW per month — 2.64 hryvnias/kW;
more than 2,000 kW per month — UAH 4.32/kW.
