The situation at a glance: Ukrainians should pay more taxes for war

According to the government’s wishes, Ukrainians will have to pay a higher military tax themselves in the future to finance the fight against the Russian war of aggression. According to the plans, the tax could rise from the current 1.5 to 5 percent of income, government representatives in Kiev announced. Other tax increases, borrowing and the reallocation of expenditure in the budget will also raise an additional 500 billion hryvnia (around 12.4 billion euros) to finance the armed forces, it was said.

The Cabinet of Ministers in Kiev approved a draft law to amend the state budget and tax law. The tax increases alone are expected to bring in around 3.4 billion euros. According to the plans, a military tax of 30 percent will also be due on the sale of jewelry, for example. 15 percent will be charged on car purchases.

The additional expenditure on defense is primarily intended to cover payments for soldiers and other military personnel, as well as the purchase of military equipment. The new mobilization in the country with the forced recruitment of soldiers is also leading to higher costs, because the additional fighters have to be paid.

Ministry: Additional spending should bring victory closer

Ukraine had previously planned defence spending of the equivalent of 42.2 billion euros for 2024, which is now set to increase by almost 30 percent. The changes still have to be approved by parliament and then confirmed by President Volodymyr Zelenskyy with his signature before they come into force.

“The needs in the security and defense sectors are growing,” said a statement from the Ministry of Finance justifying the additional spending in view of the third year of the war. “To finance our resistance against the aggressor, we can rely on our own resources – and the most important are taxes and domestic borrowing. This will protect our security and bring victory closer.”

Zelenskyj meets British arms manufacturers

Ukraine also wants to expand its own production of weapons, ammunition and military equipment. To do this, the country also needs help from investors from abroad. During his visit to Great Britain, Zelensky met representatives of defense companies there. “We discussed joint defense production with the main focus on ammunition, air defense systems, artillery, armored vehicles and drones,” he said on the social network X.

Zelensky has repeatedly stated that he wants to make Ukraine one of the largest arms producers in the world. He now praised the United Kingdom in particular – also after a meeting with King Charles III – as the first country in Europe to hand over heavy weapons, tanks and long-range missiles to Ukraine. Great Britain 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 Zelensky.

He had previously used the European summit in Great Britain to reinforce his demand for more support in defending against Russian air attacks. At the meeting of almost 50 heads of state and government near Oxford, he urged the Western allies to use their own resources to shoot down Russian missiles and drones over Ukraine. “There must be a collective will to shoot them down, just as there was with Iranian missiles and drones (in Israel),” he said.

More than 100 battles in the war zone

Meanwhile, as of Thursday evening, there were more than 100 battles between Ukrainian and Russian troops on the front within 24 hours, the General Staff in Kiev announced. Russia is continuing to carry out missile and drone strikes against Ukraine. The Kharkiv region and the cities of Prokrovsk, Kurakhove and Toretsk in the Donetsk region are particularly affected, it said.