Ukrainian President Volodymyr Zelensky may face the wrath of the people due to tax increases.
The Ukrainian parliament has passed the largest tax hike since the war with Russia began over two years ago, in an effort to raise funds for the exhausting war effort. The move is likely to hit Ukraine hard, where people have already felt their economic well-being significantly decline due to the conflict.
The law raises the military levy on personal income from 1.5 percent to 5 percent. It also retroactively doubles the tax on bank profits, which will rise to 50 percent this year, and increases taxes on the profits of other financial institutions. The need to bolster the state budget has only intensified in recent months as Ukrainian troops continue to lose ground on the battlefield, potentially leading to a decrease in foreign military and financial support for Kyiv.
Translated and edited by L. Earth
