Ukraine’s parliament, the Verkhovna Rada, has approved a law to extend the military levy for three years after the end of martial law.
The bill, which passed with 257 votes on Tuesday, is a structural benchmark under Ukraine’s $8.1 billion Extended Fund Facility (EFF) program with the International Monetary Fund (IMF).
The government is rushing to complete four structural benchmarks as Ukraine was obliged to fulfill them by the end of March. To speed up the process, comprehensive tax reform was split into separate bills and submitted to the parliament on March 31, focusing on the military levy, digital platforms, and international parcels, while a fourth bill about value-added tax (VAT) for sole proprietors (FOPs) is still in progress.
This push marks a final attempt to meet the benchmarks before the IMF’s spring meetings in Washington on April 13-18, where Finance Minister Serhiy Marchenko will report on results to Gavin Grey, the IMF Ukraine mission chief.
The Verkhovna Rada adopted draft law No. 15110 in its second reading and in its entirety on Tuesday, following a legislative push to ensure the sustainability of post-war state finances. Lawmakers also supported sending the document to President Volodymyr Zelensky for immediate signature, bypassing standard waiting periods to meet the IMF deadline.
“The adoption of the bill will allow the state budget to attract over Hr. 140 billion ($3.2 billion) during the three years following the end of martial law,” Marchenko said during the parliamentary session.
The legislation maintains the increased military levy rates for a three-year period following the year martial law is lifted:
- 5% income for individuals
- 10% of the minimum wage at Hr. 850 (almost $20) per month in 2026 for the 1st, 2nd, and 4th groups of FOPs
- 1% of income for the 3rd group FOPs and legal entities
Though the military levy extension is now secured, the remaining IMF benchmarks on international automatic exchange of information for digital platforms, such as Bolt, Uklon, Airbnb, and Uber, and VAT on international parcels valued under €150 ($170) are still awaiting final approval. The consideration of the draft laws is scheduled for April 8.
The push for these steps came after an IMF team visit to Kyiv in mid-March to address macroeconomic policies and stalled structural reforms under the program.