Ukraine extends military levy for three years after war under IMF program
The Verkhovna Rada supported the extension of military conscription for 3 years after the end of the war (Photo: Martin Schulz/Flickr)
Ukraine’s parliament extended the military levy for three years after the war, a structural benchmark under a new International Monetary Fund program, with 257 lawmakers backing bill No. 15110, Interfax-Ukraine reported on Apr. 7.
“Adoption of the bill will allow the state budget of Ukraine to attract more than 140 billion hryvnias over the three years following the year in which martial law is terminated or lifted,” Finance Minister Serhii Marchenko said while presenting the bill in parliament.
According to the explanatory note to draft law No. 15110, it provides for the extension of provisions requiring payment of the military levy introduced during martial law in Ukraine. Specifically, 5% for individuals; for sole proprietors (FOPs) under the simplified tax system in groups 1, 2 and 4 — 10% calculated based on one minimum wage as of the first day of the current month (850 hryvnias in 2026); and for single-tax payers in group 3 (FOPs and legal entities, excluding e-residents) — 1% of income, for three years following the year in which martial law is terminated or lifted.
“The second IMF-related bill No. 15111 on taxation of digital platforms was not included in the agenda. It fell short by one vote. It has been postponed until tomorrow,” lawmaker Yaroslav Zhelezniak said.
Four structural benchmarks that Ukraine was expected to meet by the end of March 2026 under the IMF’s Extended Fund Facility (EFF) program were considered unmet, Interfax reported. Parliament was expected to pass tax changes related to the cancellation of the VAT exemption for simplified tax payers, taxation of digital platforms, taxation of all parcels, and the permanent introduction of the military levy.
As reported, the Cabinet of Ministers on March 30 approved a package of three draft laws proposing amendments to the Tax Code developed by the Finance Ministry.
According to Marchenko, the proposed tax changes include regulating taxation of income earned through digital platforms, taxation of international parcels starting from zero euros, and extending the military levy after the end of martial law.
Marchenko also noted that the draft law on VAT for certain sole proprietors “is currently at the stage of coordination and revision with central executive authorities and will be submitted for approval in the near future.”
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