Ihor Terekhov, Mayor of Kharkiv and Chair of the Association of Frontline Cities and Communities, has stated that he opposes a freeze on social benefits, tax increases for families and increased pressure on sole traders. According to RBC-Ukraine, on 13 October he called for a reduction in taxes on basic foodstuffs and medicines, as well as a temporary reduction in VAT on household electrical appliances.
Briefly about the main points
- Terekhov spoke out against freezing social benefits and increasing the tax burden.
- He proposed reducing taxes on food, medicines and electrical appliances.
- The government’s package of tax bills has yet to be submitted to the Verkhovna Rada.
- It is not known exactly which initiatives or politicians Terekhov was referring to.
What changes is Terekhov proposing?
Terekhov He stated that he did not agree with the proposals to freeze social benefits, increase taxes on Ukrainian families and intensify the tax and administrative pressure on sole traders. In his view, such measures could undermine social stability in the context of the war.
Instead The official called for a reduction in taxes on basic foodstuffs and medicines. He also expressed his support for a temporary reduction in VAT on household electrical appliances.
The mayor of Kharkiv’s arguments
Terekhov He linked social support for citizens to the country’s resilience during the war. He described support for the army and the people as the state’s two priorities.
The official also referred to European practice. In France and Italy, reduced and super-reduced VAT rates are in force, and EU rules allow such rates to be applied to certain categories of essential goods, in particular food and medicines.
According to Terekhov, the resources needed to help people should be found through the formalisation of the shadow economy, the reduction of inefficient spending, and the monitoring and reporting of state projects. The «one trillion hryvnias in the shadow economy» he referred to is his own estimate: the report does not specify the methodology or the period covered by the calculation.
What is the current tax situation?
On 9 October, the Cabinet of Ministers announced that it had approved a package of tax bills, which are yet to be tabled in the Verkhovna Rada. Among the proposals announced are — VAT on imported postal and express consignments, regardless of their value, from 1 January 2027.
In March, a member of the relevant parliamentary committee Alexei Leonov He spoke about negotiations regarding the possible introduction of VAT for some sole traders. This was a statement regarding a potential decision, not an announcement of a current regulation.
