Laws on 2025 state budget and tax increase should be signed in coming days and come into force on December 1 – Shmyhal

The laws on the 2025 State Budget and tax increase should be signed by President Volodymyr Zelenskyy in the coming days and come into force on December 1, this is a requirement of key creditors, in particular the International Monetary Fund (IMF).

Prime Minister Denys Shmyhal announced this during a telethon, Ukrainian News Agency reports.

“Both the law on the 2025 State Budget and the law on amendments to the Budget Code and the Tax Code will be signed in the coming days – this is one of the key requirements of our creditors, the International Monetary Fund. The government has already appealed to the Office of the President, to the President, to sign these two laws as soon as possible,” he said.

Shmyhal stressed that, according to agreements with parliamentarians and the President, the tax increase will come into force in December, and not as previously planned in October 2024.

“All these things will come into force on December 1 – this is a very important point that we discussed with both parliamentarians and the President. That is, there will be no retroactive entry into force. After signing the law, the parliament will adopt an amendment according to which this law, all provisions of this law will come into force no earlier than December 1 of this year,” he noted.

Shmyhal stressed that, according to agreements with creditors, in particular with the IMF, by December 1, both laws – both the budget and the amendments to the Tax Code – must be signed, published and must come into force on December 1.

Shmyhal noted that the law on tax increases is important for filling all expenditure items for the defense of our state with funds this year and next.

According to him, after signing these laws, Ukraine will receive additional resources for the purchase of weapons and ammunition and the payment of salaries to the Security and Defense Forces.

As Ukrainian News Agency earlier reported, on October 10, the Verkhovna Rada increased taxes (bill No. 11416-d). At the same time, according to the text of the law, the tax increase was to begin “retroactively” – from October 1. In particular, it provides for an increase in the military fee from 1.5% to 5%.