Zelensky Raises Taxes, Offers Each Ukrainian $24

Volodymyr Zelensky has had a busy week of legislating, ushering in what the New York Times reports is the largest tax increase of the Russia-Ukraine war, along with a one-time payment to Ukraine's war-weary citizens. More:

• Tax increase: Effective Sunday, a new law raises a tax used for military expenditures from 1.5% to 5% of one's income. It also raises some rental payments and taxes bank profits at 50%, per Newsweek. This will generate an extra $3.5 billion by the end of 2025, which is to go to paying the salaries of Ukraine's service members, per the Times. Newsweek suggests it's a response to fears that President-elect Trump will slash US funding for Ukraine's defense.

• Softening the blow: Meanwhile, the government is offering a one-time grant of $24 to every Ukrainian. Zelensky said the payment was "tangible" for many families in Ukraine, where the average monthly salary is around $500, and that more than 3.2 million had already applied to receive it. The money can be used to pay bills or buy necessities—or it can be donated to the army. The $350 million program is to be paid for with funds originally meant for unemployment and demining programs, per the Times.
• Ministry of National Unity: Ukraine's parliament has also established a new ministry, conceived by Zelensky, which will serve to counter Russian influence on Ukrainians, per the Kyiv Post. The Ministry of National Unity is also to encourage the return of the millions of Ukrainians who've fled the country, the Times reports, adding little is known about how it will accomplish this. It will have an initial budget of $3.6 million, per the Post.

• Feedback: Viewing the grants as unlikely to have much impact on the economy, some experts feel the program should've benefited only those struggling financially or been scrapped entirely, with the funds sent to the military. A petition arguing the same has garnered more than 25,000 signatures, requiring a response from Zelensky, per the Times. Others say the politician is trying to shore up support after seeing his popularity fall over the past year, though a recent poll found trust in Zelensky remains strong at 59%.

(More Ukraine stories.)