Ukraine’s Fiscal Strategy 2024–2030: Strengthening Economic Potential and Aligning with EU Standards

The Ukrainian government has approved the National Income Strategy for 2024–2030. Its aim is to enhance Ukraine’s fiscal capacity, adapt tax and customs legislation to EU standards, and create incentives for post-war recovery and economic growth, as announced by the Ministry of Finance.

The strategy entails several key measures:

  1. Elimination of the simplified tax system for legal entities.
  2. Increase in simplified tax rates for individual entrepreneurs.
  3. Reduction in the scope of the first group under the simplified tax system.
  4. Higher tax rates for agricultural “simplified tax” participants and an expanded tax base.
  5. Introduction of origin tracking and record-keeping for goods.
  6. Implementation of a progressive scale for Personal Income Tax (PIT).
  7. Increment in excise duties on fuel, alcohol, and tobacco products to match minimum EU rates. The government is studying international practices for imposing excise duties on sugary drinks.

It’s emphasized that the strategy’s execution will occur in a sequential manner.

The initial phase involves an internal reform of tax and customs authorities aimed at limiting their interference in business operations through data consolidation and transitioning to work with depersonalized information, according to the statement.

The subsequent steps include rebuilding taxpayers’ trust in authorities, crucial for the success of new tax initiatives. Following this, measures of tax and customs policy will be implemented.

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