The planned increase of VAT in Ukraine for 2027 is driven by the need to finance a business insurance program against war risks. This decision was discussed in the context of the state budget for the upcoming year.
Funding the Business Insurance Program
The primary goal of increasing VAT is to raise funds for the establishment of a special fund that will ensure business insurance in the face of war risks. According to experts, Ukraine needs to attract approximately 1 billion dollars to implement this program.
Importance of Business Insurance
Insurance of businesses against war risks is critically important for the stability of the country's economy. The increase in VAT will help mitigate financial losses for enterprises that may arise due to military actions. This, in turn, will contribute to preserving jobs and supporting economic activity.