Ukraine’s parliament passes historic tax hike, scrapes plan for 5% military levy
Source: Yaroslav Zleleznyak/Telegram
On October 10, Ukraine’s parliament made a landmark move by passing a new tax reform bill that introduces big changes to the tax system during martial law. The lawmakers though chose to scrape one of the most controversial plans that could see military levy go from 1.5%, to 5%.
Bill No. 11416-d garnered the support of 247 MPs in its second reading. According to MP Yaroslav Zheleznyak, the updated law will take effect retroactively from October 1.
This new law introduces several important adjustments, including:
- Military Levy Unchanged: the tax will remain at 1.5%. However, the law extends this levy to sole proprietors under the simplified tax system, including a 1% levy on income for third-group payers and a fixed 800 hryvnias monthly fee for sole proprietors in groups one, two, and four.
- Bank Profits: Banks will face a 50% profit tax for 2024, marking a significant rise in taxation for the financial sector.
- Non-Bank Financial Institutions: These organizations will see their profit tax rate set at 25%.
- Fuel Retailers will have to deal with a new advance payment scheme for their fule sales.
- Monthly Reporting: The reporting period for taxes and the single social contribution will shift from quarterly to monthly for individual taxpayers.
Iryna Herashchenko, co-chair of the “European Solidarity”said their lawmakers helped block the 5% military levy increase but failed to “delay” the introduction of the record-breaking tax hikes.
Meanwhile, Zheleznyak revealed the effect the military levy can have on wages. He argued that salaries paid out on October 14-15 will still reflect the 1.5% levy, but after the law takes effect, the military levy for October will rise to 5%, impacting future payroll deductions.
The final version of the bill is set for review by the Parliamentary Committee on Tax Policy tomorrow.
In my previous column, I wrote about social innovations in Ukraine. Those innovations are part of civic resilience and the democratization of security, which Europe is paying close attention to right now. The EU is trying to work out how to spread responsibility for its own security across society as a whole, rather than leaving it to institutions alone. It is looking for concrete ways to bring ordinary people into the work of defense and resistance.
Petro Poroshenko’s lawyers have appealed to the High Anti-Corruption Court demanding that NABU be obligated to register proceedings regarding the fact of exerting influence on the court and to recognize Petro Poroshenko as a victim in the case of the Deputy Head of the Office of the President, Iryna Mudra, due to her pressure on Supreme Court judges who were considering a lawsuit to overturn sanctions.
Internationally recognized brands and financial institutions should direct capital to Ukraine now, not waiting for the hostilities to end. This was emphasized by Rinat Akhmetov, president of FC Shakhtar, during a working visit to UEFA headquarters in Nyon, Switzerland, where he met with UEFA President Aleksander Čeferin.
In recent days, Moscow’s official rhetoric has been dominated by hysteria over the decision of…
In 2025, the deadliest year yet for civilians, Ukraine’s three largest charitable foundations raised a record 105.9 billion hryvnias. It is more than the years 2022–2024 combined. According to the UN, humanitarian aid in Ukraine was delivered by more than 450 organisations, reaching five million people over the course of the year. Civic foundations hold licences to purchase lethal weapons, which is a function states have monopolised for centuries. These record sums were underwritten by international government grants, which means foreign states now channel billions directly through Ukrainian civic funds, bypassing inter-state channels. It is hard to imagine a stronger institutional trust in civil society.