The Verkhovna Rada of Ukraine has taken the first step towards implementing the targeted use of military tax by adopting bill No. 15167 in the first reading. The document stipulates that all revenues from the military tax will be directed exclusively to meet the needs of the army.
This is reported by Finway
Main provisions of the bill
Currently, under existing legislation, the amounts of military tax go to the general fund of the state budget and can be used for any needs, including those that are not priorities in wartime. The proposed changes stipulate that all income from the military tax will be directed to a special budget fund. These funds will only be allowed to be used for the monetary support of servicemen of the Armed Forces of Ukraine, and cannot be directed to other purposes.
“The legislative consolidation of such a resource in a special fund will ensure a clear and direct link between the payment of military tax and the financing of monetary support for servicemen of the Armed Forces of Ukraine.”
Duration and importance of the initiative
The new mechanism is planned to be implemented from January 1, 2027. It will be in effect until December 31 of the third calendar year after the year in which martial law is canceled or terminated. This decision is consistent with the previously adopted law (No. 15110), which extended the collection of military tax for another three years after the end of martial law.
The authors of the bill emphasize the fundamental importance of this approach, as the military tax is a “solidarity payment” that should directly support the defense of the country. The separation of these funds from other state budget expenditures, according to the initiators’ plan, will enhance the transparency and effectiveness of resource use for the army. Currently, the document has been submitted to the budget committee for further refinement and preparation for the second reading.
In 2025, Ukrainians paid 163.6 billion hryvnias in military tax to the state budget, highlighting the scale and significance of this funding source for the defense sector.