Record 145.2 Billion UAH in Military Levy: Ukrainians Pay More, Soldiers Still Wait for Pay

Ukraine’s State Tax Service released figures that would make any taxpayer’s head spin. Between January and September 2026, the military levy — a dedicated tax introduced to fund the armed forces — brought in 145.2 billion UAH (approximately €3.5 billion at current exchange rates). That’s 28.5 billion UAH more than in the same period of 2025, a 24.4% jump.

The increase was largely driven by a rate hike from 1.5% to 5% on personal income, effective from December 2024. Individual entrepreneurs, meanwhile, pay a fixed amount equivalent to 10% of the minimum wage — currently 864.70 UAH per month.

On paper, the defense budget should be overflowing. But reality tells a different story.

A new mechanism — but only from July

Until July 1, 2026, the military levy went into the general state budget fund, where it was mixed with all other revenues. Tracking how much of it actually reached the military was impossible. Parliament then changed the rules: starting July, the levy is channeled into a special fund earmarked exclusively for cash allowances of Ukrainian Armed Forces personnel.

In July–September, the special fund received 51 billion UAH (17.9 billion in July, 16.8 billion in August, 16.2 billion in September). These are supposed to be dedicated funds for soldiers' pay.

Yet the problem persists.

Record revenue — and delayed salaries

Despite the record inflows, servicemen regularly complain about late payments. The government blames the budget cycle, technical glitches, and administrative procedures. The official line: funds are allocated, but moving through bureaucratic layers takes time.

This explanation sounds plausible — until you ask: if there's more money than ever, why haven't the procedures been sped up? Why do soldiers still have to sue to get what they're owed?

No official statistics on lawsuits over delayed military pay in 2026 are publicly available — but even the Defense Ministry acknowledges the issue. And this is despite the Cabinet of Ministers allocating an additional 60 billion UAH for defense on October 13, 2026, of which 43.5 billion UAH is specifically for military pay and family support.

Where is the transparency?

The core problem is a lack of public accountability. We know how much was collected — 145.2 billion UAH. But we don't know how much of that actually reached soldiers. The special fund only started operating in July, meaning the 94.24 billion UAH collected in the first half of the year went into the general fund — and its trail is lost.

The government insists the money goes to defense. But without a detailed cash expenditure report for the special fund, that remains a promise, not a fact.

Context: war costs keep rising

On October 16, President Volodymyr Zelenskyy asked EU leaders for at least €70 billion in additional defense aid for 2027, estimating the total cost of the war at €155 billion. Even the record 145 billion UAH in military levy — roughly €3.5 billion — is a drop in that ocean.

But for the average Ukrainian who pays 5% of their salary every month, the key question is different: do they see the result of their money? Do soldiers get paid on time? And can the state clearly account for where the 145 billion UAH went?

Conclusion

145.2 billion UAH is not just a number. It’s the money of every working Ukrainian. While the tax service celebrates record revenues and the government allocates new billions, soldiers keep waiting. The special fund mechanism is a step forward, but without transparent spending reports, it remains a half-measure.

The central question remains unanswered: do record levies mean record funding for the army, or is this just another tax record that dissolves into the black hole of the state budget?