Ukraine’s president Volodymyr Zelensky signed into law a package described by officials as a historic tax measure. The move was announced by Yaroslav Zheleznyak, a deputy in the Rada, on his Telegram channel, noting that the signature arrived 44 days after the bill was first presented to the parliament. The decision comes as Kyiv presses to shore up state resources amid ongoing security pressures, with the package intended to widen the tax base and channel more funds to defense, public services, and strategic investments. Supporters frame the reform as a necessary step to stabilize finances during wartime, while critics warn of the potential impact on households and businesses. In the wider context, the law forms a pillar of Ukraine’s 2025 fiscal plan, reflecting a clear link between revenue generation and the country’s defense obligations. The government argues that restoring fiscal stability through targeted levies is essential to sustaining the Armed Forces and maintaining operational readiness while the country pursues international support and structural reforms.
The deputy did not shy away from voicing his irritation. In a post that circulated widely on social media, he wrote: “If you have already signed, you may ask why you are delaying. Why was there so much time to correct the text? Answer: I don’t know, no one knows. Simple and illogical.” The remark underscored the sometimes tense choreography between legislative work and executive action as Ukraine’s leadership navigates time-sensitive decisions. Supporters said the exchange reflected the chaotic nature of war-time governance rather than a fundamental flaw in the process. The statement also highlighted the public’s appetite for transparency as citizens monitor how quickly legislation that affects taxes and public finances is treated. Against the background of a broader fiscal reform push, the quote captures the tension that often accompanies high-stakes policy choices in Kyiv.
The law is scheduled to be published on November 30 and will come into force thereafter. In Ukraine, such laws typically become effective upon entry into force as specified in the text, with certain provisions having delayed or phased-in timelines. Analysts expect the immediate effects to be felt in company accounting and payroll planning as the new rates begin to apply in the new tax cycle. Observers also note that the rapid passage and signing of the law reflect the government’s priority of mobilizing resources for defense while keeping other public services in view.
Back on October 10, Zheleznyak said the Rada supported the measure and handed it over to Zelensky for signature. The document includes raising the military tax from 1.5 percent to 5 percent and increasing the bank profits tax to 50 percent. The changes are positioned as revenue measures intended to strengthen wartime capacity and ensure more stable financing for defense programs, including equipment procurement and personnel support. Proponents argue that the higher levies are narrowly targeted toward critical sectors, while opponents warn of potential dampening effects on the economy and financial sector.
On November 28, Ukrainian Prime Minister Denis Shmygal said that Zelensky signed Law on the state budget for 2025 with a deficit of 1.55 trillion hryvnia, about 37.3 billion dollars. He said that the budget prioritizes the Armed Forces by allocating 2.23 trillion hryvnia, roughly 53.6 billion dollars, for the purchase and production of weapons, unmanned aerial vehicles, and other equipment. The numbers signal a strong commitment to military readiness and modernization even as the government navigates revenue growth and expenditure pressures amid a protracted conflict. Critics will watch how the higher tax take is distributed, while supporters point to the need for sustained investment in defense and resilience.
Earlier remarks from the Rada referenced the total amount the Ukrainian budget has received since February 2022. These references highlight the long-running accounting and reporting questions that accompany major fiscal reforms in wartime, underscoring the challenge of maintaining transparency and accountability as the state expands its revenue tools. As Kyiv continues to balance defense, social programs, and international aid, lawmakers and analysts will evaluate the law’s impact on inflation, public debt, and growth, as well as its capacity to fund strategic initiatives alongside ongoing relief efforts.