Tax Service breaks records: budget revenues increase by 24% year-on-year

1 August 2025 18:20

The State Tax Service of Ukraine has exceeded its budget revenue target: uAH 70.8 billion for the first seven months of 2025. This was announced by the acting head of the State Tax Service of Ukraine (STS) Lesia Karnaukh on her official Facebook page, "Komersant Ukrainian" reports.

The State Tax Service of Ukraine demonstrates a steady increase in budget revenues, continuing the trend of exceeding targets for the seventh month in a row. According to information released by Karnaukh, in July alone, the state budget received UAH 9.9 billion more than planned, which is 12.5% of the target.

In total, in the first seven months of 2025, revenues to the general fund of the state budget in the areas administered by the State Tax Service amounted to UAH 736.4 billion, which exceeds the planned level by UAH 70.8 billion, or 10.6%. Compared to the same period in 2024, the growth is 24.1%. This is one of the best results of tax dynamics in recent years in a war economy.

The main sources of revenue in July:

personal income tax (PIT) – UAH 32.3 billion, which is 13.5% more than planned
value added tax (VAT) – UAH 27.0 billion, exceeding the plan by 5.1%;
corporate income tax – UAH 4.8 billion, which is 54.9% higher than the planned amount.

This increase is attributable to both an increase in tax compliance and improved tax administration, in particular in terms of digitalization of processes and upgrading of risk management systems.

I am grateful to every taxpayer who fulfills their duty to the state in good faith. Together, we are working to strengthen the financial resources for defense, recovery and stable functioning of the country. This is our shared responsibility and common cause,” Lesia Karnaukh said.

Stable VAT refund as an important signal for business

The stable functioning of the VAT refund mechanism is critical for ensuring business liquidity, especially for exporters. In July of this year, companies received UAH 15.3 billion in VAT refunds. In total, in January-July 2025, UAH 101.5 billion was refunded, which is 21.4% more than in the corresponding period of 2024.

This indicates not only an increase in economic activity, but also the state’s efforts to maintain financial discipline in its obligations to business even in times of war. Regular and predictable VAT refunds stimulate investment, allow businesses to plan export deliveries, and maintain trust in the tax system.

Drivers of growth: from digitalization to strict control

Among the key factors that made it possible to achieve this result, the State Tax Service notes

active fight against tax evasion in areas with high tax risks. In particular, in the trade in fuel, tobacco products and the agricultural sector;
introducing automated IT systems for monitoring risks and payment flows;
strengthening analytical work with large taxpayers;
an explanatory campaign among taxpayers to promote voluntary income declaration.

In addition, the STS actively cooperates with the Ministry of Finance of Ukraine and international partners to update tax legislation, simplify procedures for small and medium-sized businesses, and at the same time strengthen control over aggressive tax planning.

State Tax Service exceeded the plan: who became the undisputed leader in tax payments

According to the Main Department of the State Tax Service in Kyiv, the capital has traditionally been the main donor to the state budget. In the structure of national revenues, Kyiv accounts for more than 40% of all income tax and VAT payments. The largest taxpayers are fuel and energy companies, the banking sector, retail and IT companies.

Wartime conditions place a significant burden on the state budget. Successful overperformance of the State Tax Service’s targets allows the government to finance defense, social welfare payments, support for internally displaced persons, and key infrastructure projects in a timely manner.

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Мандровська Олександра

Editor