Ukrainians paid $24 billion in taxes in 2024, Finance Ministry reports

Ukrainian citizens and businesses paid over 1 trillion hryvnias ($24 billion) in tax in 2024, the Finance Ministry reported on Dec. 31.

Corporate income tax amounted to Hr 270.8 billion ($6.5 billion), value added tax came to Hr 267.8 billion ($6.4 billion), personal income tax and military tax- a sum levied from citizens to support the war effort- was Hr 233.6 billion ($5.6 billion), excise tax was Hr 133.5 billion ($3.2 billion), and Hr 51.8 billion ($1.2 billion) was transferred to the state budget from rent.

This comes a month after President Volodymyr Zelensky signed off on a major tax increase bill on Nov. 28 in a bid to plug Ukraine’s budget deficit. The bill was expected to raise an additional Hr 8 billion ($190 million) this year and should bring in an extra Hr 141 billion ($3.4 billion) to the state budget next year, said lawmaker Yaroslav Zhelezniak.

In total, Ukraine’s state budget received Hr 3.1 trillion ($74 billion), including Hr 600 billion ($14.3 billion) from the State Customs Service and Hr 453.6 billion ($10.8 billion) from international grants.

Looking towards 2025, Ukraine is bracing for a $35 billion budget deficit, Prime Minister Denys Shmyhal said in August. Foreign partners are expected to cover roughly $20 billion, while the tax reforms hope to pick up a chunk of the remaining $15 billion funding at home.

The bill, which was delayed by more than a month, also increased military tax for citizens from 1.5% to 5% and made small businesses subject to the war tax.

Banks, which are witnessing record profits, saw their profit taxes increase to 50% for 2024. Taxes for other financial institutions will increase from 18% to 25% in January 2025.

Governors of Kyiv and Poltava oblasts dismissed amid position reshuffles

Ruslan Kravchenko, the governor of Kyiv Oblast, and Filip Pronin, the governor of Poltava Oblast, were dismissed on Dec. 30 and are expected to be appointed to new positions soon.

The Kyiv IndependentThe Kyiv Independent news desk

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