The Ministry of Finance is developing a draft law to increase the military tax and value added tax. Forbes writes about this, citing unnamed MPs from the financial and economic bloc of the Ukrainian parliament and an official from the Cabinet of Ministers.

The military tax is also planned to be introduced for individual entrepreneurs, increasing it from the current 1.5% to 5%. The VAT increase is being discussed at the level of 2-3%.

The main reason for the likely tax increase is the increase in Ukraine's military needs, which, according to estimates, range from UAH 400-500 billion.

According to the publication's calculations, an increase in the military tax rate from 1.5% to 5% for employees (excluding the introduction of a military tax for individual entrepreneurs) will bring “extra” UAH 90-100 billion a year to the state treasury.

According to the MPs, the relevant draft law may be submitted to the Verkhovna Rada session hall at the end of June - the beginning of July. However, even if the document is adopted as quickly as possible, the new tax rates will not come into effect until September.