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Ukraine Considers Decriminalizing Pornography to Increase Tax Revenue for Military Funding

Ukraine is considering a bill to decriminalize pornography to generate tax revenue for military funding. The bill has passed its first reading and could potentially bring in $25 million, helping to address a significant budget gap. The initiative was partly driven by the experiences of OnlyFans creators facing legal challenges and high tax demands.

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Yaroslav Zhelezniak Svitlana Dvornikova Volodymyr Zelensky

Ukraine is considering a bill to decriminalize pornography as a potential revenue source to support military expenses amid the ongoing conflict with Russia. The bill, which has already passed a first reading with a vote of 231-8, is scheduled for a second reading during the current legislative session that runs through February. Currently, Ukraine is one of the few European countries where the production or possession of pornography is illegal, with penalties of up to seven years in prison, alongside countries like Bulgaria, Iceland, Lithuania, Belarus, and Russia.

The decriminalization of this underground industry could generate an estimated $25 million in tax revenue, according to the State Tax Service of Ukraine. Lawmakers have suggested that this revenue could help address a $27 billion budget gap and support military efforts against Russia. Yaroslav Zhelezniak, a co-author of the bill, emphasized that the current situation benefits the shadow economy rather than the state budget.

Zhelezniak noted that the potential tax revenue could fund the purchase of 30,000 drones for the military. The initiative was inspired by a petition from Svitlana Dvornikova, an OnlyFans creator, who faced significant tax demands and legal action from federal authorities. Her petition, which gathered 25,000 signatures, prompted a response from President Volodymyr Zelensky.

Dvornikova indicated that legalizing pornography would allow creators to operate more openly and contribute financially to the state. In 2023, nearly 7,900 Ukrainian OnlyFans creators reportedly earned over $131 million, prompting the tax authority to demand payments from these individuals based on data received from the platform's parent company in the UK.

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Ukraine weighing decriminalizing porn to generate tax revenue for war with Russia

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Ukraine Considers Decriminalizing Pornography to Increase Tax Revenue for Military Funding