Rada approves increase in defense spending by UAH 500 billion in first reading

The decision was supported by 301 members of parliament, as reported on Telegram by Yaroslav Zheleznyak, a member of the parliamentary faction Holos.

“The bill was adopted only in the first reading, so it remains in the form submitted by the government. It includes an additional UAH 125 billion in tax revenues, but it will be amended before the second reading according to the recommendations provided by the committee,” Zheleznyak wrote.

The deadlines for submitting amendments to the bill have been cut in half.

Earlier, it was reported that in July, the Verkhovna Rada registered government bill No. 11416 to amend the Tax Code, proposing an increase in various taxes and fees.

On Sept. 2, 2024, the Verkhovna Rada’s Finance, Tax, and Customs Policy Committee, to cover the increased defense spending by UAH 500 billion by the end of the year, proposed not only raising taxes but also increasing domestic borrowing and changing the principle of distributing the “military personal income tax” for three months in 2024.

The Budget Committee of the Verkhovna Rada supported this version of the bill.

On Sept. 3, 2024, the Rada rejected a bill that would have raised taxes by UAH 30 billion.