Ukraine Approves Bill to Increase Taxes to Cover Defense Needs

(Bloomberg) -- The Ukrainian parliament approved a draft law to increase taxes on individuals, companies and banks starting from this year to cover increased military and defense needs.

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Legislators backed the tax increase bill on the second reading Thursday, lawmaker Yaroslav Zheleznyak said on Telegram. Some 247 voted in favor, he said.

The government increased military spending by 500 billion hryvnia ($12 billion) in July by amending the law on 2024 state budget. The approved tax hike may not be sufficient to cover the defense budget gap.

The bill on the first reading approved last month envisages a tax increase of 58 billion hryvnia this year and 137 billion hryvnia in 2025.

--With assistance from Olesia Safronova.

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