Historic tax hikes and new "reservation" rules are set to change in Ukraine starting December 1. What can you expect?
In December, Ukrainians can expect a series of significant changes. A law on the "historic" tax increase will come into effect, making the military tax mandatory for individual entrepreneurs (FOPs). Alongside higher taxes, there will be a bonus — the "Thousand of Zelensky," and some will receive 6500 UAH per child.
Additionally, new rules for reserving from mobilization will take effect, and a new bridge will open for traffic in Kyiv. "Telegraph" has compiled all the main changes:
Ukrainians will pay higher taxes. What specifically?
Starting December 1 (instead of November 30, as initially announced due to a "printer's error"), the law on the "historic" tax increase will take effect in Ukraine. It will impact both employed individuals and FOPs, as well as banks and gas stations.
What will change:
- Increase of the military tax from 1.5% to 5% for employed individuals (with the exception of military personnel).
- 50% tax on the banks' excess profits;
- 25% profit tax for financial companies;
- exemption of cashback from taxation;
- Gas stations must pay profit tax in advance for each refueling (30, 45, or 60 thousand UAH depending on the type of refueling).
FOPs of all groups are expecting an increase in military tax in January 2025, claims the Ministry of Finance.
"Thousand of Zelensky"
On December 1, the social program "Winter eSupport", widely known as the "Thousand of Zelensky," will launch. Under this program, citizens located in Ukraine, including children, will receive a payment of 1000 UAH.
The funds can be used for paying utility bills, purchasing medications, tickets for "Ukrzaliznytsia," donations to the Armed Forces of Ukraine, and other services. The program will be active until the end of February 2025, and the assistance can be spent until the end of the following year.
The thousand can be obtained through the main screen in the "Action" app by following these steps:
- Open the "National Cashback" card in one of the partner banks (PrivatBank, monobank, Sberbank, and others). Opening and maintaining the card is free of charge.
- Activate the card in the "Services" section of "Action".
- Select the "Winter Support" service and submit an application.
- Wait for the funds to be credited.
6500 for children's clothing
The government has announced a one-time cash assistance of 6500 UAH for purchasing warm clothing for children. This funding is intended for buying clothing, footwear, and other necessities required during winter, but there will be no monitoring of expenses. The following categories will receive the funds within a month:
- families classified as low-income with children;
- internally displaced families with children receiving housing allowances will receive money for each child under 18;
- this assistance will also be provided to individuals with disabilities of the first group among internally displaced persons.
To receive it, no additional application is necessary. Registration will occur automatically based on digital exchanges and information available in state registries. In turn, the funds will be directed to the recipient's card account.
New reservation rules
Starting December 1, 2024, the rules for reserving military personnel will change. This is outlined in the Cabinet of Ministers Resolution No. 1332, which introduces an updated version of Order No. 76.
- The reservation procedure will transition to a digital format through the "Diia" portal. Exceptions will be made for certain enterprises and institutions that lack the technical capability to apply through "Diia".
- Re-reservation will begin from scratch — everyone will be required to undergo the process anew. Reservations valid as of November 23, 2024, will remain valid but no longer than February 28, 2025. They will be canceled unless a critically important enterprise re-reserves these workers via "Diia" by that date;
Moreover, companies wishing to maintain their status as critically important must confirm their compliance with the new criteria by the end of February 2025. This reduces the risk of abuses.
Workers (from private companies) with salaries below 20,000 UAH cannot be reserved, even at critically important enterprises. This creates additional requirements for companies, which must ensure "white salaries" while also being prepared to adjust wage levels if necessary.
State and communal enterprises are required to pay employees at least the average salary for the IV quarter of 2021.
Podilsky Bridge in Kyiv will open for cars
On December 1, the Podilsky Bridge (connecting Troieshchyna with Podil) will open for the movement of passenger cars and public urban passenger transport in Kyiv. Trucks will not be allowed for now.
Traffic will also utilize the newly constructed tunnel connecting the bridge with the exit to Petar Vershyhora Street towards Roman Shukhevych Avenue and the Troieshchyna residential area.
Furthermore, new bus routes No. 110 and No. 112 will be introduced, which will operate through the Podilsky Bridge from the residential areas of Troieshchyna and Voskresenka.
Transportation costs will rise in Odesa
Starting December 1, transportation fares in Odesa will increase. In trams and trolleybuses, prices will rise to 15 UAH, in minibuses — to 20. The fare for electric transport is eight UAH, and if paid online, it will be seven. One ride in a minibus costs 15 UAH.
Catching crayfish will be prohibited
From December 1, a ban on catching crayfish will begin in most Ukrainian water bodies.
The exception is the Danube River — there, the ban will commence on December 5, as well as in the Kyiv, Kaniv, Kremenchuk, Kamensky, and Dnipro reservoirs — starting December 15.
The penalties for such violations are significant: ranging from fines to criminal liability, as well as compensation for damages caused to the fishery. The compensation for one illegally caught crayfish amounts to 3,332 UAH.
Previously, "Telegraph" reported that due to tax increases and inflation, goods will become more expensive in Ukraine this winter. Prices will rise not only for vegetable "borsch" sets but also for other affordable goods — pasta, cereals, bread, and more.