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Food, medicines and goods for emergency power supply: the Rada proposes to reduce VAT

Food, medicines and goods for emergency power supply: the Rada proposes to reduce VAT

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The Verkhovna Rada has registered draft law No. 16069, which provides for a reduction in VAT rates on a number of socially important goods. These include, in particular, food products, medicines, medical and children’s goods, as well as equipment for autonomous and backup power supply.

This was reported by the press service of the parliament.

The authors of the document explain the need for such changes by the simultaneous increase in prices for essential goods and a decrease in incomes of some of the population in conditions of prolonged martial law. Since VAT is a consumption tax, its amount is actually included in the final price and paid by the buyer.

In their opinion, the current taxation system does not sufficiently take into account the social significance of certain product categories. Food, medicines, children’s goods and other necessary items make up a significant part of household expenses, so the tax burden is especially noticeable for families with low and middle incomes.

The document also addresses the importance of the availability of products designed for autonomous and backup power supply of household appliances. They help maintain the necessary conditions for life during power outages or complete absence.

Reducing VAT on such products, according to the authors, should reduce their final cost for buyers. At the same time, they note that a similar approach is used in European Union countries, where reduced VAT rates apply to basic consumer goods, including food products.

Bill No. 16069 proposes to reduce the VAT on medicines and medical devices from 7% to 5%. The same preferential rate is intended to be applied to medicines manufactured in pharmacies, food products for special medical purposes, certain sanitary and hygienic products, and children’s products.

A 5% VAT is also planned for basic food products. This list will include meat, fish, dairy products, vegetables, fruits, flour, cereals, oil, pasta and bakery products.

For goods needed by households during power outages or absences, the bill provides for a separate temporary VAT rate of 7%. It will be in effect until Ukraine becomes a full member of the EU.

Bill No. 16069 provides for a reduction in the rate on medicines and medical devices from 7% to 5%. The benefit is also proposed to be extended to pharmaceuticals, food products for special medical purposes, certain sanitary and hygienic and children’s products.

They want to introduce a 5% rate for basic food products as well. These include meat, fish, dairy products, vegetables, fruits, flour, cereals, oil, pasta and bakery products.

A temporary rate of 7% is proposed for products needed by households during power outages or absences. It will be in effect until Ukraine becomes a full member of the EU.

It was previously reported that the Cabinet of Ministers has expanded the state program “Affordable Medicines”. Starting in September 2026, more Ukrainians will be able to receive free test strips to monitor blood sugar levels.

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