Ukraine Parliament Approves Controversial Tax Hikes

Ukraine's parliament has approved significant tax hikes to address the country's growing budget deficit amid the ongoing war with Russia. The new measures include raising the war tax on residents from 1.5% to 5%, increasing the corporate tax rate on banks to 50%, and implementing a 25% tax on financial institutions' profits starting in 2025. The government aims to generate $563 million this year and approximately $3 billion next year to fund military spending. The decision has been met with substantial public and political opposition, with concerns over financial strain on citizens and potential misuse of funds due to corruption. Despite the unpopularity, officials argue the increases are essential to sustain Ukraine's defense efforts. The bill awaits ratification by President Volodymyr Zelenskyy, and foreign aid remains crucial to balance Ukraine's budget.