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