Part of the 'military' tax will be directed to payments for downed drones: what will change in the funding of the Armed Forces of Ukraine

The Verkhovna Rada Budget Committee reviewed eight bills proposing amendments to the Law of Ukraine "On the State Budget of Ukraine for 2026." Among them is the government bill on financial support for the security and defense sector (registration No. 15224), six alternative bills to it (Nos. 15224-1 – 15224-6), as well as a separate bill No. 15177.

The government bill provides for the regulation of the procedure for crediting European Union financial aid to the state budget in 2026. In addition, the document proposes to define the targeted use of funds from the military tax and export duty on military and dual-use goods — they plan to allocate these funds to the monetary allowance of servicemen of the Armed Forces of Ukraine, as well as to the purchase, modernization, and renewal of armaments.

The bill also stipulates that part of the revenues from the so-called 'military' personal income tax is proposed to be used to pay rewards for the destruction of drones of the aggressor state.

Separately, the government proposes to significantly increase funding for the national security and defense sector — by UAH 1.56 trillion. Additionally, UAH 40 billion is planned to be allocated to the state budget reserve fund, as well as UAH 40 billion for the implementation of Comprehensive Resilience Plans for regions and individual cities.

The alternative bills mostly repeat the provisions of the government document but contain some differences. In particular, they concern the mechanisms for distributing the 'military' personal income tax, possible reductions in expenditures for certain main budget managers, and regulation of other budget issues. At the same time, the Ministry of Finance expressed significant remarks on all alternative bills and did not support any of them.

Following the review, the Committee recommended that the Verkhovna Rada include all the mentioned bills in the session agenda. At the same time, the government bill No. 15224 is proposed to be designated as urgent and, after consideration in the first reading, adopted as a basis. The Committee also plans to instruct to prepare the document for the second reading under an accelerated procedure.

Separately, the Committee reviewed bill No. 15177 regarding the allocation of the military tax to the special fund of the state budget to increase monetary allowances for servicemen of the Armed Forces of Ukraine. The document proposes to establish the targeted use of military tax funds specifically for payments to the military in the second half of 2026.

Since this issue is already regulated by the government bill No. 15224 and alternative documents, the Committee recommended that the Verkhovna Rada include bill No. 15177 in the agenda and decide on its further fate by voting after considering the entire package of relevant bills.

As reported by "Judicial and Legal Newspaper", the government submitted to parliament a bill revising the state's financial plan for the current year. The key focus is attracting EUR 90 billion from the EU and creating targeted funds for the Ministry of Defense.

The document focuses on three directions: attracting international aid, consolidating internal resources, and stimulating technological resistance. The total amount of additional expenditures on security and defense under this project exceeds UAH 1.56 trillion.

We also wrote that a bill was registered which provides for an increase in the basic monetary allowance for servicemen by 1.5 times from June 1, 2026. It also provides for increases for key social and demographic groups of the population, including children of various age categories, working-age persons, and pensioners.

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