Zelenskyy signs tax increases into law: How much more will the budget receive?

President Volodymyr Zelenskyy signed a law on tax increases that are necessary to finance defense spending. The increases came into force on December 1. The total tax increases in 2024 will be about ₴8B ($195M). In particular, taxes for citizens and individual entrepreneurs will increase. Next year, the main revenue source will be income from individual taxpayers, and banks will pay an increased tax burden. The law provides for an increase in the military levy on all income from citizens from 1.5% to 5%.

In 2025, due to the rise in taxes, budget revenue will increase by ₴140B ($3.4B). An increase in the military levy rate will provide ₴107.7B. The law sets the income tax rate for non-bank financial institutions (except insurers) at 25%, which will bring ₴157.7M in 2025. Monthly advance tax payments for fuel retail enterprises will yield ₴4.3B in 2025. The law provides for setting the tax rate for banks’ profit for 2024 at 50%. This will yield ₴27B in 2025.