The National Bank recommends taxing parcels up to 150 euros and non-priority imports – electric cars, luxury items. This is reported in the October NBU inflation report, writes Liga.net
The National Bank’s recommendation is related to the record deficit of the current account of Ukraine’s balance of payments (i.e., with the outflow of currency abroad), which in January-September 2025 reached $24.9 billion.
This growth is not associated with a consumer boom, but with spending on defense and the country’s reconstruction. According to the NBU, the largest increase is in imports of engineering products (by 36%) and investment goods (by 39%), which are needed for the defense complex. Consumer imports increased by 8%, but their share in total imports is even decreasing.
However, traditional methods of reducing the deficit – fiscal consolidation or exchange rate mechanisms – have limited effectiveness during wartime, and a significant reduction in spending could reduce the country’s defense capability, the NBU said.
Therefore, it proposed to focus on targeted measures to limit non-priority imports without negative consequences for the economy and security. This would allow to somewhat reduce the outflow of currency without harming critical areas.
“Possible options may include reducing non-priority spending, as well as introducing taxation of areas that are not critical in wartime without significant negative consequences for the economy. In particular, it is worth focusing on targeted measures to limit imports: taxes on parcels worth up to 150 euros and other non-priority imports – electric cars, luxury goods, etc.,” the report says.
Despite the formal deficit, the NBU sees no threats to Ukraine’s external stability, as it is fully financed by international partners on concessional terms. International reserves as of early October remain high at $46.6 billion.
