Ukraine May Raise VAT to Fund Business War Insurance Fund

• Ukraine is considering increasing VAT from 20% to 21% to finance a new insurance fund for business recovery after Russian attacks.
• The proposed 1% VAT surcharge would be directed to the fund, which aims to provide “first loss” coverage and support rapid business recovery.
• The fund is expected to have total capital of $2–3 billion, with at least half sourced from international partners.
• Business insurance under the scheme would cost 2% of the insured amount, with compensation potentially reaching up to $10 million per corporate group.
• The government is targeting a launch date of January 1, 2027, if funding sources are secured.

Source: sud.ua

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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