Ukraine will abolish the military tax of 5%, - Hetmansev

Ukraine will abolish the military tax of 5%, - Hetmansev

The military levy will remain in Ukraine after the war, but the rate will automatically return to 1.5% after the martial law is lifted. Currently, the temporarily increased rate of 5% has helped to collect over 40 billion hryvnias to support the army and the country’s budget.

This was reported by the head of the Verkhovna Rada Committee on Finance, Tax and Customs Policy, Danylo Hetmantsev ("Servant of the People"), in a comment to the media. According to him, this tax provided over 40 billion hryvnias in revenue to the state treasury in 2024.

From December 2024, the military levy rate was temporarily increased to 5%. This change significantly increased the budget revenues: in the last month of the year alone, around 9 billion hryvnias in additional funds are expected. For comparison, in 11 months with a rate of 1.5%, the budget received over 40 billion hryvnias. For different categories of taxpayers, the military levy is set under the following conditions:

• regular employees: 5% from the salary (for example, 1,500 hryvnias from a salary of 30,000);

• individual entrepreneurs III group: 1% from turnover;
• individual entrepreneurs I, II, and IV groups: a fixed levy of 10% from the minimum wage (800 hryvnias);
• incomes exempt from levy: pensions, scholarships, payments for military bonds.

Hetmantsev emphasizes that the increased military levy rate is a temporary measure. After the end of martial law, it will automatically return to the pre-war level – 1.5%. The additional 3.5% will be canceled without the need for separate parliamentary decisions.

Despite this, the military levy is not planned to be completely abolished, even after the war ends. The tax will continue to serve as a stable source of funding for the army and supporting the country’s defense capability.

Why the military levy is important

• stable army funding: the military levy is one of two taxes (along with personal income tax) that provides rapid budget replenishment;
• transparency and efficiency: the tax has a clear target focus – defense funding, which allows citizens to be confident in its necessity.
• support for citizens: the government has exempted certain categories of income (pensions, scholarships) from the levy to minimize the financial burden on the most vulnerable segments of the population.

From the beginning of 2025, the military levy rate for individual entrepreneurs will vary depending on the group, while regular employees will continue to pay 5% until the end of martial law. Economic experts predict that the military levy will remain one of the key taxes even in the post-war period.