**Ukraine Raises Taxes to Fund War Effort**
President Volodymyr Zelensky has signed a law that will raise taxes in Ukraine. The law was passed by parliament last month and is meant to help the country’s budget.
The tax increase will bring in Hr 8 billion ($192,000) in 2024 and Hr 141 billion ($3.4 billion) in 2025. This money will be used to fund the war effort against Russia.
One of the taxes being increased is the military tax, which will go from 1.5% to 5% of a person’s income. However, military personnel will still only pay 1.5%. The law also introduces a new tax for self-employed people and increases profit taxes for banks.
**Budget in Crisis**
Ukraine is struggling with a budget deficit due to the war. The government says it needs Hr 2 trillion ($48.2 billion) in revenues, but expects to spend Hr 3.6 trillion ($86.8 billion). This includes spending Hr 2.2 trillion ($53 billion) on defense, which is 26.3% of the country’s projected GDP.
**Criticism and Concern**
Some people are critical of the tax increase because it may make living conditions in Ukraine even harder. The government says it needs to find ways to fund the war effort at home, but this could have negative effects on citizens.
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