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Photo: https://t.me/ihor_terekhov
The mayor of Kharkiv, and head of the Association of Frontline Cities and Communities, Ihor Terekhov believes it is crucial to raise the minimum wage while significantly cutting VAT on essential goods to prevent further impoverishment of the Ukrainian population.
“The state must act without delay. The minimum wage needs to be increased to at least 10,000 hryvnias, and the minimum pension to 6,000. To ensure price increases don’t erode this raise, VAT on basic food items should be reduced from 20% to 5%, with a guarantee that the difference reflects on price tags rather than boosting retail profits. Similarly, state reimbursement for vital medications must be expanded,” Terekhov posted on his Telegram channel.
He pointed out that the substantial rise in the number of Ukrainians living below the poverty line between 2021 and 2025 is directly linked to the war.
“According to World Bank estimates, 41.6% of Ukrainians lived below the poverty line in 2025. In 2021, this figure was 20%. Poverty has more than doubled in four years. The primary reason is evident: the war. The enemy is destroying our energy infrastructure, businesses, warehouses, and homes. Every such strike eventually shows up in our bills: with higher prices for groceries, fuel, medicines, and utilities. People are losing their jobs, savings, and property. Sometimes all at once,” Terekhov wrote.
He also emphasized the growing disparity between the rich and the poor.
“However, the war impacts people unevenly. Those with savings can still manage. For those living paycheck to paycheck, a single illness or job loss can push them below the poverty line. The gap between people is widening, and the poorest are becoming even poorer,” Terekhov stated.
He further stressed that his proposed measures should not involve introducing new taxes or increasing existing ones.
“No new taxes for individuals. VAT for sole proprietors or an increase in VAT on goods and services will only take away from citizens what the state is trying to give them. In the fight against poverty, this isn’t a cure – it’s poison,” Terekhov wrote.
Concurrently, he did not specify the sources from which he proposes to fund the increase in the minimum wage, the reduction in VAT on essential products, and the expansion of state reimbursement for medicines.