The situation in overview - Ukrainians should pay more taxes for the war
Ukrainians are expected to pay higher military taxes as per the government's will in the future to finance the fight against the Russian aggression war. The tax hike could reportedly increase from 1.5% to 5% on income, according to government representatives in Kiev. Additionally, other tax increases, loans, and budget reallocations are planned to raise an estimated 500 billion Hryvnias (around 12.4 billion Euro) for military financing, it was stated.
The Cabinet approved a draft bill in Kiev to amend the state budget and tax code. The tax increases alone are projected to bring in approximately 3.4 billion Euro. A military tax is also expected to apply to the sale of jewelry, at around 30%, and to car purchases, at 15%.
With the additional expenditures for defense, the primary focus will be on securing payments for soldiers and other military personnel, as well as purchasing military equipment. The new mobilization in the country with forced recruitment of soldiers is also leading to higher costs, as the additional fighters must be paid.
Ministry: Extra expenses will bring victory closer
Ukraine had previously planned defense spending of around 42.2 billion Euro for 2024, which is now set to increase by nearly 30%. The changes must still be approved by the parliament and then signed into law by President Volodymyr Zelenskyy before they take effect.
"The needs in the security and defense sectors are growing," according to a statement from the Finance Ministry justifying the additional expenses. "To finance our resistance against the aggressor, we can rely on our own resources – and the most important ones are taxes and loans in the country. This will protect our security and bring victory closer."
Zelenskyy meets British arms producers
Ukraine also aims to expand its own production of weapons, ammunition, and military equipment. The country is also reliant on foreign investment for this endeavor. Zelenskyy met with representatives of British arms manufacturers during his visit to the UK. "We discussed joint defense production with a focus on ammunition, air defense systems, artillery, armored vehicles, and drones," he shared on social media X.
Zelenskyy had previously stated that he wanted to make Ukraine one of the world's leading weapons producers. He praised the UK – following a meeting with King Charles III – as the first European country to provide heavy weapons, tanks, and long-range rockets to Ukraine. The UK was also the first country to sign a security agreement with Ukraine. "And we are deepening our cooperation in the defense sector even further," said Zelenskyy.
He previously used the European summit in the UK to reiterate his call for more support in countering Russian air raids. During the meeting of over 40 state and government leaders at Oxford, he urged Western allies to shoot down Russian rockets and drones over Ukraine using their own resources. "There must be a collective will to shoot them down, just as there was with Iranian rockets and drones (in Israel)," he said.
More than 100 fights in the warzone
At the front, there were over 100 fights between Ukrainian and Russian troops within 24 hours as of Thursday evening, according to the Kiev General Staff. Russia continues to launch rocket and drone attacks against Ukraine. The areas of Charkiw and the cities Prokrowsk, Kurachowe, and Torezk in the Donezk region were particularly affected, it was reported.
- The anticipated increase in military taxes in Ukraine, as announced by government representatives in Kiev, is driven by the country's need to finance its fight against Russian aggression war.
- The increase in military taxes could potentially rise from 1.5% to 5% on income, along with other tax increases, loans, and budget reallocations, according to government estimates.
- Volodymyr Zelenskyy, the President of Ukraine, met with British arms producers to discuss joint defense production and foreign investment, aiming to expand Ukraine's own production of weapons and military equipment.
- The additional expenditures for defense in Ukraine will primarily focus on compensating soldiers and other military personnel, as well as purchasing essential military equipment to bolster their offensive capabilities.
- The UK has been a supportive ally, providing Ukraine with heavy weapons, tanks, and long-range rockets, making it the first European country to do so.
- To counter Russian air raids, President Zelenskyy called for collective action from Western allies, urging them to shoot down Russian rockets and drones over Ukraine using their own resources.
- The ongoing conflict between Ukraine and Russia has resulted in over 100 fights between the two countries' troops within 24 hours, with Russian forces launching rocket and drone attacks particularly impacting the areas of Charkiw and cities like Prokrowsk, Kurachowe, and Torezk in the Donezk region.
