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Automatically translated version. May contain inaccuracies compared to the original.
The head of the Association of Frontline Cities and Communities, Kharkiv Mayor Ihor Terekhov, presented a set of proposals to prevent further growth of poverty in Ukraine. The proposals were presented during the roundtable “Responding to the Challenge of Poverty: New Initiatives for State Social Protection Policy,” which 4 September took place in Kyiv.
The event brought together representatives of parliament, the government, the medical and expert community, international organizations, and civil society. Among the participants were Members of Parliament Maksym Tkachenko, Serhii Kozyr, Tetiana Tsyba, Oleh Marusiak, Mykhailo Ananchenko, Anton Shvachko, Lesia Zaburanna, Ruslan Horbenko, infectious disease physician, Doctor of Medical Sciences Olha Holubovska, head of human development programs in Eastern Europe at the World Bank Nitin Umapati, head of the NGO Generation of Mothers “Lada” Maryna Marchenko, head of advocacy at the Public Union “League of the Strong” Ihor Bevkh, head of social projects at PH Capital, Minister of Social Policy of Ukraine in 2022–2025 years Oksana Zholnovych.
According to World Bank estimates, the poverty rate in Ukraine in 2026 reached 41,6%.
As Terekhov emphasized, the state must not only support people who have already fallen into hardship, but also prevent further impoverishment of working families, pensioners, internally displaced persons, and other vulnerable groups.
“Year after year the war destroys people’s well‑being, takes away jobs, takes away incomes, savings, for some takes away their home, the ability to live and work. And the possibility of a future,” he said.
Among the Association head’s key proposals is to set a VAT rate of 5% on basic foodstuffs, reduce VAT on medicines and medical devices from 7% to 5% with an expanded list of goods covered by the preferential rate, and temporarily set a VAT rate of 7% on equipment for autonomous and backup household power supply.
Terekhov stressed that even with limited budgetary resources the state must seek resources to support people.
“Yes, it is impossible to economize on defense. But it is possible to review and eliminate ineffective programs that, unfortunately, are operating today, excessive administrative expenditures, spending on maintaining the state apparatus, fight the shadow economy and better administer revenues,” he said.
Separately, the Association head proposed reviewing basic social standards. In the proposals to the state budget for 2027 year – set the minimum wage at no less than 10 thousand hryvnias, and the minimum pension at no less than 6 thousand hryvnias.
“As part of preparing proposals for the state budget for 2027 year we have already proposed raising the minimum wage to at least 10 thousand hryvnias, and the minimum pension to 6 thousand hryvnias,” Terekhov noted.
He also called for a review of the subsistence minimum, which, he said, is significantly detached from the real cost of living.
“The subsistence minimum has really become detached from today’s reality. And today it is a little over three thousand hryvnias. Although even a minimal food basket costs quite a different amount,” the Kharkiv mayor said.
During the discussion significant attention was paid to the accessibility of medical care. Terekhov proposed expanding the “Affordable Medicines” program and introducing a mechanism to compensate patients for the cost of medicines if, during hospitalization, the medical facility did not provide drugs from the National List. In such cases the National Health Service should reimburse the patient’s expenses and recover the corresponding amount from the medical facility’s funding.
Following the roundtable, participants will continue to work together on the proposals with Members of Parliament, government representatives, and experts. The developed solutions will form the basis for further legislative work.
In particular, some initiatives to reduce VAT on socially significant goods have already been prepared for bill registration in the Verkhovna Rada.
In conclusion, Ihor Terekhov urged not to limit the effort to discussion but to move to concrete decisions.
“We need to develop concrete, real steps so that our state is not a country where 41,6% of the population is below the poverty line,” he concluded.
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