The Paradox of War: Why Ukrainians Have Started Paying More Taxes and What It Means

Funding for local budgets in Ukraine has significantly increased in the first half of 2025. According to the acting head of the State Tax Service of Ukraine Lesia Karnaukh, local budgets received a total of 236.5 billion UAH. This is 18.2% more than in the same period of the previous year, which amounts to almost 36.4 billion UAH in additional funds.

The main sources of income for local budgets are personal income tax, a single tax, corporate profit tax, property tax, as well as excise tax, tourist tax, and environmental tax. According to Lesia Karnaukh, the joint work of the tax service and local communities allows for improved tax administration quality and ensures the development of the country's regions even in challenging economic conditions.

'The local tax authorities are working with communities to improve the quality of tax administration. The more funds local budgets receive, the more opportunities there are to implement important projects. Together with communities and businesses, we are forming a resource for development, despite the tough conditions,' emphasized Lesia Karnaukh.

The report on the growth of revenues in local budgets indicates a positive trend in the financial stability of regions in Ukraine, as well as successful cooperation between local authorities, businesses, and the tax service in implementing an effective tax management system.