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Military tax remains for many more years: Rada passed the law

Військовий податок залишиться актуальним ще на тривалий час: законодавство затверджено Верховною Радою. Photo: Телеканал Рада

The Verkhovna Rada on April 7 supported a law that provides for the extension of military tax payments even after martial law has ended. The tax will remain in effect for at least three more years without changing rates. 

Military tax rates in Ukraine: what will remain unchanged

The bill No. 15110 was voted for by 257 members of parliament in two readings. The document confirms the current military tax rates for the coming years.

The following rates are provided:

  • 5% — for most individuals,

  • 1.5% — for military and security sector,

  • 10% of the minimum wage — for FOP 1, 2, and 4 groups,

  • 1% of income — for single tax payers of group 3.

It is expected that this will ensure stable revenues to the budget even after the war ends.

Military tax after the war: where the funds will go

A key innovation will be the creation of a separate special fund in the state budget, where all revenues from the tax will be directed.

This includes:

  • more stable financing for the needs of the Armed Forces,

  • targeted use of funds for defense,

  • increased transparency in expenses.

According to estimates from the Ministry of Finance, the military tax will bring in about 163 billion UAH annually.

The tax was initially introduced as temporary during the war, but now it is being effectively established as a long-term source of funding for defense. This decision is also related to Ukraine's international commitments, in particular with the IMF.

Separately, MP Yaroslav Zheleznyak reported that the provision in the draft law regarding the cancellation of the exemption for parcels up to 150 euros has removed the norm regarding limiting the status of PEP to three years. Also, until Ukraine joins the EU, fines for banks related to such clients will not be applied temporarily.

For Ukrainians, this means that the tax burden on income and business will remain even after the war ends.

Recall that earlier Yaroslav Zheleznyak reported on new steps by the government in the field of budget and finance. According to him, important decisions that will affect the economic situation in the country may be made in the near future.