Ukraine has more than doubled military taxes on its citizens, amid fears Donald Trump may cut U.S. funding of its defense against the Russian invasion.
The 2025 military levy will be increased from 1.5 percent to 5 percent, according to legislation signed into effect on Thursday by Ukrainian President Volodymyr Zelensky, said Reuters.
Finance Minister Serhiy Marchenkko said the bill would ensure there is funding for the Ukrainian defense sector next year. Residents will pay 5 percent on their personal income from December 1 onward, to help raise about $3.4 billion. The bill will also increase some rental payments, and tax banks’ profits at 50 percent.
The tax rises come ahead of Donald Trump’s January move into the White House. During his election campaign, Trump repeatedly promised to end the Russia-Ukraine war and has frequently said he believes the U.S. is spending too much on military aid for Ukraine.
On Wednesday, the President-elect nominated Keith Kellogg to serve as special envoy for Ukraine and Russia. He is a retired Army lieutenant general who was also national security adviser to former Vice President Mike Pence during Trump’s first term.
Newsweek has contacted Ukraine’s Defense Ministry and the Trump transition team, via email, for comment.
Trump wrote on Truth Social of Kellogg: “He was with me right from the beginning! Together, we will secure PEACE THROUGH STRENGTH, and Make America, and the World, SAFE AGAIN! Keith has led a distinguished Military and Business career, including serving in highly sensitive National Security roles in my first Administration.”
In May, Kellogg released a plan coauthored with former Trump aide Fred Fleitz, which called for military aid to Ukraine to cease unless it agreed to hold peace negotiations with Russia. It said the conflict should be frozen along its current front lines, which as it stands, would leave Russia controlling around one-fifth of Ukrainian territory.
The document outlined how there should be a “formal U.S. policy to seek a ceasefire and negotiated settlement of Ukraine’s conflict.”
It said that the U.S. would continue to provide weapons and assistance to Ukraine to make sure Moscow makes “no further advances and will not attack again after a ceasefire or peace agreement.” Further U.S. military aid for Kyiv would “require Ukraine to participate in peace talks with Russia.”
The document says, that to bring Vladimir Putin to the table, the U.S. and its NATO partners should delay Ukraine’s membership in the alliance in exchange for security guarantees.
Kyiv should also realize it will take a long time to regain all its occupied territory, and the partial lifting of sanctions on Russia could push the Kremlin toward peace.
It is unclear whether Trump will use the plan cowritten by Kellogg to end the war.
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