Government not planning further tax increases in 2025 – finance minister

Finance Minister Sergii Marchenko announced this on Ukrainian television, Ukrinform reports.

He said that the recent tax hike was a necessary and compromise measure to partially address the state's needs in financing the Ukrainian Armed Forces.

"It was a difficult decision. This year, we had no other sources to fund the army apart from taxes. The volume of domestic borrowing is also limited," Marchenko said.

He noted that the government is mindful of the financial strain on businesses and citizens and therefore does not intend to increase tax pressure further. Future financing for the Ukrainian Armed Forces is expected to come from frozen Russian assets, which may be partially allocated for purchasing weapons and military equipment.

On December 25, Ukrainian President Volodymyr Zelensky signed Law No. 9319, which delays the implementation of new tax changes for individual entrepreneurs until January 1, 2025.

The Ukrainian Finance Ministry has also issued clarifications regarding the application of new military tax rates, which are set to take effect in 2025.

Photo: Ukrainian Finance Ministry