The Ukrainian parliament says that the government is preparing to raise taxes.

Chairman of the Verkhovna Rada Committee on Finance Danylo Hetmantsev said that the Cabinet of Ministers is preparing proposals to raise certain taxes. This is because the Ministry of Defense needs an additional $5-10B in financing and it is difficult to restructure its external debt. However, the government has not submitted anything to the parliament, so it is not known what the new rates will be.

At the same time, the parliamentarian emphasized that the Cabinet of Ministers will consider the consequences for the economy, though he noted that underfunding the army could turn out to be “much worse” and even “fatal.”

The main sources of budget revenues are personal income tax, military levy, value-added tax, and excise duties. There is also an income tax, but due to the complexity of its administration, it is unlikely to be changed.

Hetmantsev also noted that in 2025, there is a risk of not receiving sufficient foreign aid. Ukraine needs more than $32B, of which $15B has not yet been confirmed. Another risk is military spending if the war continues throughout 2025.