Ukraine Considering Reduction in VAT Rates for Medical Products, Basic Food Items, and Goods that Support Household Needs During Power Outages and Blackouts

The Ukrainian Parliament is considering Draft Law No. 16069 of 14 September 2026, which proposes targeted reductions and changes to the Value Added Tax (VAT) rates for essential goods, medicines, and emergency household items to lower costs for consumers. In particular, the measures of the draft law include:

• A permanent reduction in the current VAT rate on medical products and pharmaceuticals from 7% down to 5%, while expanding the scope to include pharmacy-made medicines, specialized dieta…