Ukraine may introduce a new tax to fund post-war reconstruction
Once martial law ends in Ukraine, a new tax for the country’s reconstruction may be introduced. The government is considering this option as a possible replacement for the military levy to ensure stable revenue for the state budget during the postwar reconstruction period.
This is stated in the updated Memorandum with the International Monetary Fund under the Extended Fund Facility (EFF) program.
According to the document, the military levy for individuals will remain in effect for another three years after martial law is lifted. After that, the government plans to ensure that budget revenues do not decline.
One possible solution could be the introduction of a reconstruction tax to replace the military levy during the transitional postwar period.
“We will ensure that revenues do not decrease after this measure expires. One option is to introduce a reconstruction tax in place of the military levy,” the document from the Ukrainian side states.
The IMF supported this approach. The Fund emphasized that, in the long term, Ukraine intends to achieve a primary budget surplus of 0.2–0.4% of GDP, which should help restore the country’s financial and debt sustainability.
According to the IMF’s assessment, to achieve this, the Ukrainian government must continue measures to increase domestic revenues and ensure stable tax revenues in the medium term.
The Fund also noted that after the end of martial law, budget expenditures should gradually adapt to the new conditions, taking into account a reduction in defense spending and increased funding for recovery and reconstruction programs and other government priorities.
At the same time, should a reconstruction tax be introduced, its parameters will be defined in legislation governing the transition period following the end of the war, according to Interfax-Ukraine.
Meanwhile, the National Bank of Ukraine is preparing to put a new high-denomination banknote—2,000 hryvnias—into circulation. It will be available to the public starting September 4, 2026.
Banknotes issued by the Bank of England may in the future feature images of wild animals instead of historical figures. Currently, British banknotes feature well-known figures, including Winston Churchill. However, the new design may incorporate illustrations of wildlife—such as beavers and other animals.
