The Ministry of Finance explains the importance of the historic tax increase.

All the tax revenue in the state budget is directed to the security and defense sector, but even that is not enough. The Ministry of Finance noted that the balance is covered through other sources, including non-tax revenues and domestic borrowing.

The ministry added that, despite rising costs, tax rates have not changed since the start of the full-scale invasion, and in 2022 support benefits were even introduced. In 2023 tax revenues amounted to 32.4% of GDP, which is lower than the pre-war indicators from 2013 (37%) and 2021 (33.1%), and the average level for Organization for Economic Cooperation and Development countries (34%).

To ensure defense financing in 2024-2025, it is necessary to adopt amendments to the Tax Code in the second reading, the Ministry of Finance emphasized.