Ukraine Reforms Tracker Weekly — Issue 40
Editor’s note: This is issue 40 of Ukrainian lawmaker Yaroslav Zhelezniak’s weekly "Ukraine Reforms Tracker" covering events from Oct. 15–22, 2025. The digest highlights steps taken in the Ukrainian parliament related to business, economics, and international financial programs.
The Kyiv Independent is republishing with permission.
IMF benchmarks and soft commitments
Ukrainian lawmakers pass 2026 state budget in first reading
Parliament has approved the 2026 draft state budget in the first reading.
Under the proposal revenues are set at Hr 2.4 trillion, up Hr 446.8 billion from 2025. Expenditures are projected at Hr 4.8 trillion, an increase of Hr 415 billion year on year.
Core budget parameters remain unchanged following the first reading. However, lawmakers supported an amendment to extend tax exemptions on electric vehicle imports until 2027. It will be incorporated into the budget only if the Cabinet of Ministers adopts the necessary decision. According to estimates by industry NGO A-95 Consulting Group, this exemption has already cost the state budget about Hr 60 billion in lost revenue over the past two years.
Next, the Cabinet of Ministers will review parliament’s budget proposals, deciding whether to incorporate any of the amendments submitted by lawmakers.
The final vote on the budget in the second reading is expected in mid-November.
Parliament approves Hr 325 billion increase to 2025 defense budget
Ukraine’s parliament approved draft law No. 14103 in the first and final reading, amending the 2025 state budget to allocate an additional Hr 325 billion ($7.7 billion) for defense spending.
Lawmakers also instructed the speaker of the Verkhovna Rada to immediately sign the bill and forward it for the president’s signature.
Parliament advances proposal to double bank tax to 50%
The Verkhovna Rada has backed draft law No. 14097 in the first reading, which , for the third time, would temporarily raise the corporate income tax rate for banks from 25% to 50%.
The tax would apply from 2026 through Q1 2027, calculated quarterly. The Finance Ministry expects it to bring Hr 15–23 billion to the budget in 2026 and around Hr 5 billion in 2027.
Other key issues
War-time measures in Ukraine extended for the 17th time
The Verkhovna Rada has voted to extend both martial law and general mobilization, adopting draft laws No. 14128 and No. 14129. The extension will take effect from Nov. 5 for another 90 days, lasting until Feb. 3. The bill is now being prepared for the president’s signature.
Event
On Oct. 23, the Technology of Progress NGO will host an event dedicated to the harmonization of Ukraine’s customs legislation with the EU acquis.
During the event, we will present the Shadow Report on Ukraine’s progress in aligning with Chapter 29 "Customs Union" for 2024, as well as an interactive dashboard that enables analysis of key customs performance indicators. This initiative is an important step toward strengthening the potential of digital tools in combating corruption and enhancing the transparency of procedures.
In addition, the NACP will present its study on corruption risks in Ukraine’s customs sector.
You can join the event both online and offline.
