How much did Ukraine spend on defense: the Ministry of Finance disclosed the figure and appealed to citizens

Between January and July 2024, Ukraine has already allocated UAH 1 trillion to the defense and security sector. The funds were spent on military salaries, food, equipment purchases, and much more. Ukraine takes all the money to support the military exclusively from its budget, so the country's residents are urged to pay taxes.

This was reported by the Ministry of Finance of Ukraine. It is noted that these costs have already amounted to 58.1% of the total expenditures of the general fund of the state budget.

In July, in particular, UAH 161.6 billion was used. The funds were used for:

• salaries for military personnel, rank-and-file and senior officers, and police officers;
• purchase of military/special equipment, weapons, ammunition, defense products, personal protective equipment (helmets, body armor, and other special equipment), fuel, and lubricants;
• procurement of food for the defense forces;
• medical support;
• other expenses to support the activities of the relevant bodies and formations.

"Military expenditures are covered exclusively at the expense of domestic revenues and borrowings. We urge you to support the Armed Forces of Ukraine by paying taxes in good faith and investing in military bonds, as these are the main sources of financing for the security and defense of Ukraine," the Ministry of Finance said.

As a reminder, amidst the large funding needs, the Cabinet of Ministers is to submit amendments to the Tax Code to the Rada, including those that would increase basic taxes. According to MPs, this document has already undergone some changes, in particular

• the military duty rate remains increased from 1.5% to 5% and the income tax for banks is set at 50% and for financial companies at 25%.
• The draft law excludes the VAT increase and the introduction of a tax on luxury goods.

Also, according to Danylo Hetmantsev (Servant of the People), chairman of the relevant parliamentary committee, tax increases will not work without de-shadowing. Therefore, the government plans to:

• implement customs and Bureau of Economic Security (BES) reforms;
• reduce public spending;
• strengthen the fight against shadow schemes.

Yaroslav Zhelezniak (Holos), deputy chairman of the same committee, believes that the revised government bill will bring less than UAH 125 billion to the budget this year. The fact is that the new tax rates will, at best, take effect only for three months until the end of the year. The shortfall in revenues is planned to be compensated by budget cuts, de-shadowing, and other measures.

As reported by OBOZ.UA, all Ukrainian businesses should abandon tax evasion schemes, envelope salaries, and shadow operations in the context of a full-scale war. And if the government does not ensure significant de-shadowing and compliance with uniform rules by all business representatives before raising taxes, white businesses will suffer from the tax increase.

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