Ukraine to Extend Military Levy for Three Years Post-War, Creating a Special Reconstruction Fund

New Legislation on Ukraine's Military Levy

According to Главком: The Ukrainian parliament, the Verkhovna Rada, has passed draft law No. 15110, which will extend the country's military levy for a period of three years after the war ends. The bill received support from 257 members of parliament. A key provision is the establishment of a separate special fund within the Budget Code, where all revenue from this levy will be directed. This move is crucial for Ukraine's economy, as passing the law is a prerequisite for the country to receive further financial assistance from the International Monetary Fund (IMF).

Regulating the Post-War Levy

Under the new rules, the military levy will not be terminated immediately upon the war's conclusion. Prime Minister Yuliia Svyrydenko met with heads of parliamentary committees to discuss passing legislation required under the IMF program and the Ukraine Facility. A central topic was ensuring the nation's financial stability during the challenging recovery period.

According to Finance Minister Serhii Marchenko, the new regulations are projected to contribute over UAH 140 billion to the state budget over the three years following the war. The levy structure is as follows:

• Individuals: 5% of income
• Sole proprietors (FOPs) in Groups 1, 2, and 4: A fixed monthly sum of 10% of the minimum wage, projected to be approximately UAH 865 in 2026.
• Sole proprietors (FOPs) and companies in Group 3: 1% of income

Draft law No. 15110 therefore outlines significant shifts in Ukraine's fiscal policy for the post-war reconstruction era. Its adoption underscores Ukraine's commitment to maintaining financial stability after the conflict and continuing cooperation with international financial institutions. The extended military levy will serve as a vital tool for supporting the state budget and funding national recovery, a measure that will also influence economic forecasts and the investment climate in Ukraine.

As Ukraine prepares for a challenging recovery phase, the importance of sustainable financial measures becomes increasingly evident. The new military levy not only aims to bolster the state budget but also aligns with the IMF's call for a permanent levy that was initially introduced as a temporary solution. This alignment highlights the ongoing commitment to fiscal stability and international cooperation in rebuilding efforts.