Government ignores the position of the Verkhovna Rada and submits budget 2026 with 60% of PIT for communities

The government has submitted the budget for 2026 with 60% of PIT for hromadas, despite the position of the Verkhovna Rada and the AUC. Photo: Mykolaiv City Council, «NikVesti»

The Government has submitted to the Parliament a revised draft State Budget for 2026, which leaves the share of personal income tax for local budgets at 60%. This is contrary to the position of the Verkhovna Rada, which supported the 64% rate for hromadas in the first reading.

This was reported by Roksolana Pidlasa, chairman of the Rada's Budget Committee, on Facebook.

According to her, the revised document does not change the key parameters for local budget revenues.

«The distribution of personal income tax remained unchanged from the first reading — 60%,» Roksolana Pidlasa wrote.

Changes to the draft budget for 2026. Screenshot: Roksolana Pidlasa

In the comments under her post, users drew attention to the discrepancy between the Verkhovna Rada's position and the new version of the budget.

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The mayor of Smila, Cherkasy region, Serhii Ananko, asked if there was a mistake, as the relevant committee and the Rada deputies supported 64% of the draft budget in the first reading. Roksolana Pidlasa replied that «the government submitted» and the changes were a decision of the Cabinet of Ministers.

The issue of personal income tax is particularly sensitive for frontline communities. In the article NikVesti: «Less Tax, Less City: What the PIT Cut Means for Mykolaiv» describes how the reduction of the tax share directly affects the city's budget, which is rebuilding schools, hospitals and critical infrastructure. The Mykolaiv City Council has already called on the government and parliament to retain 64% of PIT for communities.

The reaction to this amendment sparked a debate, as increasing the PIT share to 64% was one of the key expectations of communities and proposals of the Association of Ukrainian Cities.

Comments under the publication of Roksolana Pidlasa on amendments to the state budget for 2026. Photo: screenshot

The Verkhovna Rada plans to consider the 2026 budget in the second reading on 18 November.

AUC warned earlier about the lack of support of 64% in the working group

In a commentary to NikVesti, the Advisor to the Head of the Association of Ukrainian Cities clarified that the government group that prepared the main parameters of the draft budget-2026 failed to agree on the 64% personal income tax rate.

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«Unfortunately, there was no support for 64% in the working group. Now we need another round of approvals. We hope that the government will take into account the position of MPs and introduce the provision on 64% PIT in community revenues in the second reading of draft law №14000,» she said.

As a reminder, the government submitted the draft State Budget for 2026 to the Verkhovna Rada in September, where it proposed to reduce the share of personal income tax that goes to local budgets from 64% to 60%. If the changes are adopted in the 2026 budget, communities across the country could lose 15.9 billion hryvnias.

The Parliament supported the document in the first reading as a basis and approved the recommendation to retain 64% of personal income tax in local budget revenues. After receiving MPs' proposals, the Cabinet of Ministers revised the document based on the recommendations of the Budget Committee and sent it for consideration in the second reading. It is scheduled to take place by 20 November.

See also the article NikVesti: «Special economic zone for Mykolaiv: a chance to stop the outflow of business or a risk for the budget».

After a meeting of the Congress of Local and Regional Authorities on 7 October, the head of Mykolaiv's regional state administration, Vitalii Kim, said that the government would not reduce the share of personal income tax for frontline communities — it would remain at 64%.