MPs react to Zelensky's signing of a tax hike policy

Source: Oleksiy Honcharenko/Telegram

On November 28, Ukraine’s president Volodymyr Zelensky signed into law 4015-IX, a controversial piece of legislation that introduces a “historic” tax increase. The law, which has drawn sharp criticism, will come into effect on December 1.

Here are the key changes introduced:

Military Tax Increase: The rate on all Ukrainian income jumps from 1.5% to 5% for 2024 and 2025.
Sole Proprietors (known as FOPs):
- Group 3 FOPs will pay a 1% military tax on income.
- Groups 1, 2, and 4 will contribute an amount equal to 10% of the minimum wage.
Corporate Tax Changes: Non-banking financial institutions face a new 25% profit tax rate.
Personal Income Tax Reporting: Mandatory monthly tax forms.
Bank Profits: A 50% tax on bank earnings remains for 2024.

The law’s critics didn’t hold back. Opposition MP Oleksiy Honcharenko called the tax hike a ‘shame’, arguing that revenues now can go on the one-off “one thousand hryvnias’ benefit Zelensky promised to pay to every Ukrainian, and expensive military contracts that once again can leave Ukranian troops with faulty mortar shells.

MPs react to Zelensky’s signing of a tax hike policy