The Association of Frontline Cities and Communities of Ukraine proposes raising the minimum pension to UAH 6,000, the minimum wage to at least UAH 10,000, and reducing the value-added tax (VAT) on essential goods to 5% in the 2027 state budget, said Ihor Terekhov, head of the Association and Kharkiv Mayor.
"Year after year, the war destroys people's well-being, takes away jobs, income, savings; for some, it takes away their own home, the opportunity to live, the opportunity to work, and build future... We need to be proactive. The state must now build a system that ensures income growth, so we don't lose people. Therefore, within the Association of Frontline Cities and Communities, we have already addressed several issues on how to prevent poverty," Terekhov said during a roundtable discussion titled "Responding to the challenge of poverty: new initiatives in state social protection policy" at the Interfax-Ukraine news agency on Friday.
According to him, as part of the preparation of the 2027 state budget, the Association proposed raising the minimum wage to at least UAH 10,000 and the minimum pension to UAH 6,000.
Terekhov also proposed reducing the value-added tax (VAT) on essential goods to 5%: basic foodstuffs (meat, fish, dairy products, vegetables, fruits, flour, cereals, vegetable oil, pasta, and bakery products).
Furthermore, it is proposed to reduce the current preferential VAT rate for medicines and medical devices from 7% to 5%, and expand the list of goods covered by it.
Separately, it is proposed to temporarily set the VAT rate at 7% on equipment for autonomous and backup power supplies for households.
Among other things, the Association proposes significantly expanding the Affordable Medicines program and introducing a zero surcharge for essential medications for the most socially vulnerable citizens within the state-set price.
It is also proposed to establish a maximum out-of-pocket family expenditure on necessary treatment based on income.
The head of the Association of Frontline Cities and Communities advocates for a review of approaches to determining the subsistence minimum, which, according to Terekhov, is currently significantly "out of touch with the real cost of living."
Furthermore, the Association proposes increasing assistance to internally displaced persons (IDPs) to UAH 4,500 per person and guaranteeing payment for the first six months after displacement, regardless of family income.
At the same time, it is proposed to establish a rule according to which, during the first year after employment, half of a person's salary, who has been unemployed for a long time or who has been receiving social assistance, should not be counted when determining the family's eligibility for social support, and the payments themselves should be gradually reduced.
During the roundtable talk, it was announced that some initiatives, in particular those related to reducing VAT on socially significant goods, have already been prepared as draft legislation.
"I understand perfectly well that the state budget's capacity is currently limited. I understand perfectly well that defense capability is paramount. But people are also paramount, and we defend the interests of the country and its people," Terekhov added.
During the discussion, participants examined a range of legislative and administrative solutions aimed at overcoming and preventing poverty. Specifically, they discussed: ensuring citizens' rights to affordable and high-quality medicines; the implementation of state mechanisms for reimbursement of medical expenses; guarantees for children's access to necessary medical care and the safe discharge of vulnerable patients; ensuring the right to an adequate minimum income and financial support for individuals in difficult life circumstances; and other initiatives aimed at strengthening social protection and reducing inequality.
Particular attention was paid to the discussion of a legislative initiative to reduce the VAT rate on socially significant goods as a means of increasing their affordability for Ukrainian families and reducing the financial burden on households.
