Starting in 2025, numerous changes will come into effect in Ukraine that will impact citizens’ lives. This includes changes in tax burden, insurance costs, product prices, exchange rates, and other important aspects. Let’s examine each area in more detail.
New Taxes: Who Will Be Affected by the Changes?
As of January 1, a law will come into effect regarding tax increases. The changes include:
- Increase in military fee rate from 1.5% to 5%.
- New fee for individual entrepreneurs: entrepreneurs in the first, second, and fourth groups must pay 10% of the minimum wage (800 UAH per month).
- Increase in corporate income tax for banks to 50%, and for non-bank financial institutions – to 25%.
- Transition to monthly tax reporting for individuals.
Changes will also apply to declarations for real estate tax, and new reporting forms will be mandatory for submission in 2025.
ESV Payment: Mandatory Payment Reinstatement
The unified social contribution, which became voluntary during the state of war, will again be mandatory for all self-employed individuals and individual entrepreneurs. Additionally, monthly reporting will replace quarterly reporting.
Dollar Exchange Rate: Forecast for January
At the beginning of the year, the hryvnia will demonstrate stability due to low activity in the foreign exchange market. According to experts’ forecasts, the dollar exchange rate in January will range from 41.8-42.5 UAH. A temporary plateau is expected due to reduced demand for currency after the holidays.
Food Prices: Rising Trends
Prices for dairy products may increase by another 15% during the winter. The main reasons:
- Lack of quality milk.
- Increasing costs for mechanization of enterprises.
- New taxes and a complex economic situation.
However, the cost of other products may remain stable due to seasonal decrease in demand.
Excise taxes on tobacco: cigarettes will become more expensive
The law provides for a gradual increase in excise taxes on tobacco products to the EU level. In 2025:
- The excise rate on cigarettes will be 78 euros per 1000 pieces.
- The price of a pack will increase by approximately 40 UAH.
At the same time, the changes will apply only to traditional cigarettes, Heat Not Burn products will remain outside of the new tax conditions.
Auto liability insurance: electronic policies and new rules
The new law on mandatory civil liability insurance introduces electronic policies. The main innovations:
- Direct settlement will allow individuals to contact their insurance company, not the perpetrator of the road accident.
- Increasing insurance sums to 500 thousand UAH for life and 250 thousand UAH for property.
- Policies can be checked through photo and video surveillance cameras.
This will facilitate the processing of road accidents and increase the amount of payments to victims.
What’s next?
Starting in 2025, Ukrainians will have to adapt to new economic realities. Tax increases, price changes, and new insurance requirements will significantly impact the budget of each family. At the same time, economic stability will depend on external factors such as international aid and domestic reforms.
Stay informed about the changes to keep up with current events!
