Ministry of Finance considers 2% to 3% VAT rise to fund war with Russia
Ukraine’s Ministry of Finance is reported to be considering a 2% or 3% VAT rise from the current 20% rate to help fund military spending following the 2022 illegal Russian invasion.
It is also reviewing a rise the Military Tax from 3.5% to 5% on employees, and extending it to non-incorporated businesses.
The tax raising proposals will likely be introduced by the end of June, with an early implementation date of September possible.
Countries such as Estonia have also resorted to VAT rises to help fund extra military spending following the Russian action in Ukraine. A Lithuania VAT rise is also being considered.
