Terekhov proposed lowering VAT on food and raising minimum wages and pensions

Kharkiv mayor Ihor Terekhov presented a set of proposals to reduce VAT on basic products and to raise the minimum social standards. The proposals were voiced 4 in September during a roundtable in Kyiv. Terekhov, who heads the Association of Frontline Cities and Communities, stressed that the state should not only help those who are already in poverty, but also prevent the deterioration of the financial situation of working families, pensioners, and displaced persons. According to the World Bank, the level of poverty in Ukraine in 2026 year reached 41,6%..

The event titled "Responding to the Poverty Challenge: New Initiatives for State Social Policy" brought together members of parliament, government representatives, the medical community, and international organizations. The proposals of Terekhov are reported by the Association of Frontline Cities and Communities. Among the participants of the discussion were MPs Maksym Tkachenko, Serhiy Kozyr, Tetiana Tsyba, Oleh Marusiak, Mykhailo Ananchenko, Anton Shvachko, Lesia Zabuhranna, Ruslan Horbenko, infectious disease physician Olha Holubovska, World Bank East Europe Human Development Program Lead Nitin Umapati, and Ukraine’s Minister of Social Policy in the years 2022–2025 Oksana Zhólnovych.

"War year after year destroys people's well-being, takes away jobs, takes away income, savings, for some takes away their own home, the ability to live and work. And the possibility of the future," said Ihor Terekhov.

Among the key proposals of the association's head are to set the VAT rate at 5% on basic food products, reduce VAT on medicines and medical supplies from 7% to 5%, with an expanded list of privileged goods, and also to temporarily introduce a VAT rate of 7% on equipment for autonomous and backup electricity supply for households.

"Yes, you can't economize on defense. But it is possible to review and cut ineffective programs that, unfortunately, today operate, excessive administrative expenses, expenses on maintaining the state apparatus, combat shadow economy, and better administer revenues," said Ihor Terekhov.

Separately, the head of the association proposed reviewing basic social standards. In the proposals to the state budget for the year 2027, it is proposed to 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 the state budget proposals for 2027 year, we have already proposed raising the minimum wage at least to 10 thousand hryvnias and the minimum pension to 6 thousand hryvnias," noted Ihor Terekhov.

The Kharkiv mayor also urged reviewing the subsistence minimum, which, in his words, is significantly detached from the real cost of living.

"The subsistence minimum has realistically detached from reality today. And today it stands a little more than three thousand hryvnias. Although even the minimum food basket costs quite different sums," noted Ihor Terekhov.

Discussed the accessibility of medical care.

Significant attention during the discussion was paid to the accessibility of medical care. Terekhov proposed expanding the "Affordable Medicines" program, and also implementing a mechanism to reimburse patients for the cost of medicines if, during hospitalization, the medical institution did not provide drugs from the National List. In such a case, the National Health Service of Ukraine (NSZU) should reimburse the patient’s expenses, and the corresponding amount should be deducted from the medical institution's funding.

Infectious disease physician Olha Holubovska drew attention to the flaws of the "Affordable Medicines" program, outdated treatment regimens on its list, and additional patient costs, including transportation. Meanwhile, the World Bank's East Europe Human Development Program lead Nitin Umapati stressed that the fight against poverty requires not only adopting quality state decisions but also effective implementation at the local level.

Earlier, Informator reported that since 1 September salaries and pensions have risen for several categories of recipients — in particular, teachers received a allowance of 20%, and pensioners aged 70 years received age allowances from 300 to 570 hryvnias. We also wrote that for pension entitlement, documentary confirmation of work experience is crucial, and if the original document remained on the occupied territory, the Pension Fund and the Ombudsman’s Office developed alternative mechanisms via registry, archival documents, or witnesses.