From 1.5 to 5 percent

Ukrainians have to pay more taxes for war

Recruit during training in Ukraine

(Bild: AP)

Ukrainians are to pay a higher military tax in future. The tax could rise from 1.5% to 5% of income, the government in Kiev announced. Other tax increases and borrowing are also planned.

In future, a military tax will also be payable on the purchase of cars (15 percent) and the sale of jewelry (30 percent). In this way, a total of 500 billion hryvnia (the equivalent of around 12.4 billion euros) is to be raised for the Ukrainian armed forces. A corresponding law has already been approved by the Cabinet of Ministers. However, for the changes to come into force, they still have to be passed by parliament and signed by President Volodymyr Zelensky.

Forced recruitment causes costs
So far this year, the Ukrainian government has spent the equivalent of 42.2 billion euros on the country's defense. This figure is now set to rise by almost 30 percent, partly due to the forced recruitment of soldiers. "The needs in the security and defense sector are growing," said the Ministry of Finance. The additional spending would "protect our security and bring us closer to victory."

Security and defense needs are growing. To finance our resistance against the aggressor, we can rely on our own resources - and the most important are taxes and borrowing in the country.

Finanzministerium der Ukraine

Expansion of weapons production
In addition, the country's own production of weapons, ammunition and armaments is to be expanded. Zelenskyi has repeatedly stated that he wants to make Ukraine one of the largest arms producers in the world. To achieve this, the country is reliant on investors from abroad. Among other things, cooperation with the UK is to be intensified. The UK government recently handed over heavy weapons, tanks and long-range missiles to Ukraine.