The tax increase law will take effect on December 1, according to Shmyhal (updated).

The laws concerning the state budget for 2025 and amendments to the tax code will be signed in the coming days and will take effect from December 1.

Prime Minister Denys Shmyhal reported this during a telethon. 

According to him, the government has approached President Zelensky regarding the rapid signing of both documents. It is important to note that the law on tax increases was adopted by the Rada back in October. It stipulates an increase in the military levy from 1.5% to 5%, a military levy of 1% of income for single tax payers of group III; for groups I, II, and IV – 10% of the minimum wage. “This is a very important point that we discussed with both parliamentarians and the president. There will be no ‘retroactive enforcement’. After the law is signed, the parliament will adopt an amendment stating that all provisions of this law will come into effect no earlier than December 1, 2024,” the prime minister noted.

The state budget for 2025 anticipates 141 billion UAH in revenue due to tax increases. Regarding expenditures, 60% will be directed towards security and defense needs, amounting to over 2.2 trillion UAH. Half of this money will go towards military salaries, with 739 billion UAH allocated for the production and purchase of military equipment and weapons. Nearly 47 billion UAH will be directed towards drone purchases, and 55 billion UAH will go towards the modernization of the defense industry.

For social protection, 421 billion UAH is allocated, including 42 billion UAH for subsidy payments. Pension indexing is planned for March.

10.5 billion UAH will be directed to veterans, nearly 200 billion UAH to the education sector, and 217 billion UAH to healthcare. “All programs planned for next year will be fully funded and implemented,” Shmyhal added.

UPDATED at 20:23:

The president announced that he will sign the law on the state budget for the next year on November 28. “I held a meeting today with the head of government Denys Shmyhal, Minister of Finance of Ukraine Marchenko, and representatives of the Verkhovna Rada. We discussed the main parameters of the state budget for next year, our financial readiness for this December and the following year. We agreed that tomorrow I will sign the law on the state budget for next year – immediately after it arrives from the Verkhovna Rada. The main thing is that all financial needs of Ukraine for the near future and the next year are guaranteed,” Zelensky said during an evening video address.