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The Verkhovna Rada adopted draft law No. 15110 extending the military levy for three years after the end of the war. A total of 257 MPs voted in favor of the bill both in the first reading and as a whole.
According to the adopted law, a separate special fund will be created within the Budget Code, where revenues from the military levy will be directed.
The bill is one of the key requirements of the International Monetary Fund (a so-called “benchmark”). Its adoption was necessary for Ukraine to continue receiving financial assistance from the IMF.
The explanatory note to draft law No. 15110 explicitly states that the military levy will not be abolished immediately after the war. It will remain in place for another three years to ensure the state has sufficient funds not only for the army but also for post-war reconstruction and the restoration of damaged infrastructure.
According to Finance Minister Serhii Marchenko, who presented the bill in parliament, the changes will allow the state budget to raise more than UAH 140 billion over three years after the end of the war.
Under the law, the levy rates will be: individuals will pay 5% of their income; sole proprietors in groups 1, 2, and 4 will pay a fixed monthly amount equal to 10% of the minimum wage (about UAH 865 in 2026); and sole proprietors and companies in group 3 will pay 1% of their income.
Earlier, the relevant committee of the Verkhovna Rada recommended that MPs support the bill in full.
Prior to the vote, Prime Minister Yuliia Svyrydenko held a meeting with the heads of parliamentary committees, stating that parliament would consider several bills required under both the IMF program and the EU’s Ukraine Facility.
Previously, President Volodymyr Zelenskyy emphasized that parliament must adopt ten critically important laws to secure financial support.
According to analysts, without IMF support—which directly depends on the adoption of these tax initiatives—the budget would have funds only until May. In a more optimistic scenario, if MPs pass laws under the Ukraine Facility program, financing could last until mid-summer.
The IMF approved a new Extended Fund Facility (EFF) program for Ukraine worth $8.1 billion for 2026–2029. The program is described as a key anchor for international financial support and includes structural reforms necessary for post-war recovery and European integration.
The technical parameters of the 48-month program were agreed after negotiations in November. It includes 16 structural benchmarks for the government and parliament, as well as four prior actions required for the program’s launch.
After the latest negotiations, these prior actions were lifted, but the measures remain key benchmarks.
In December 2025, the Finance Ministry proposed a draft law introducing mandatory VAT for sole proprietors with annual income above UAH 1 million, which faced criticism from businesses and economists.
The government failed to meet key structural benchmarks scheduled for the first quarter of 2026 under the IMF program, mainly because MPs did not support the necessary decisions. The Cabinet began seeking compromises, including raising the threshold to UAH 4 million.
The government also prepared a new tax package after the previous one was not approved, splitting it into three separate bills, including No. 15110, while the VAT bill for sole proprietors is not currently planned to be submitted to parliament.
