Changes in April: Who Will Lose Pensions, Who Will Receive 1500 Hryvnias, and How Cigarettes Will Become More Expensive

In April, Ukrainians will face a range of changes, particularly concerning financial matters that affect both personal and state budgets. The government has announced new payments for socially vulnerable groups, while also implementing measures to address rising fuel costs. However, some pensioners will find themselves without their pensions, marking a significant shift in the country's social support system.

Starting from April 1, certain Ukrainian pensioners will see their pensions halted. This decision affects individuals residing in occupied territories or those who have relocated to areas controlled by Ukraine or abroad but failed to inform authorities by a specified deadline that they are not receiving pensions from Russia. This applies even to those who have undergone identification processes, confirming their personal data and place of residence.

Initially, the Cabinet of Ministers of Ukraine set a deadline for notification of February 1, 2026, but the government has decided to move this deadline up by two months, providing additional time for pensioners to report their status. Notifications could be submitted through the personal account on the Pension Fund's web portal, via video conferencing on social media, by responding to inquiries from specialists, or in person at the Pension Fund service centers.

Ukrainian state agencies do not exchange information with Russian pension authorities, as Russia is considered an aggressor state. Therefore, the responsibility for providing accurate information lies entirely with the pensioner, as emphasized by the Pension Fund of Ukraine (PFU). If any false information is discovered, such actions will be treated as fraud.

On April 7-9, the Ukrainian Parliament is expected to review a package of tax laws that the International Monetary Fund (IMF) has mandated. The Verkhovna Rada has been reluctant to consider these bills for several months, but their approval is critical for securing assistance from the IMF and other donors, which Ukraine desperately needs.

The last attempt to pass one of the tax laws concerning digital platforms, often referred to as the 'OLX tax,' failed on March 10. On March 30, the Cabinet of Ministers approved revised tax projects, which will soon be resubmitted to the Verkhovna Rada. A key change is that the implementation of these laws is now planned for January 1, 2027, rather than in the immediate future.

In addition to the 'OLX tax,' the Verkhovna Rada is also set to vote on a law that would eliminate exemptions on the shipment of parcels valued up to 150 euros. Regarding the military tax, the new version of the project proposes a 5% tax for three years following the lifting of martial law. In the previous draft, the 5% military levy was to remain in place permanently after the war.

The fourth and most contentious law involves the introduction of VAT for individual entrepreneurs with annual incomes exceeding one million hryvnias. However, it is possible that the government may not submit this law for parliamentary consideration in the near future.

According to Yaroslav Zheleznyak, a member of the 'Holos' faction, the government is pushing for the rapid adoption of these laws to achieve results before the government delegation travels to Washington for the IMF and World Bank Spring Meetings scheduled for April 13-18.

In April, pensioners and those receiving social assistance will receive a one-time payment of 1500 hryvnias. This initiative aims to support socially vulnerable categories of citizens. The list of those eligible for payments is extensive, with approximately 13 million Ukrainians expected to benefit, according to the Ministry of Social Policy, Family, and Youth.

However, pensioners receiving the maximum pension of 25,595 hryvnias will not qualify for this assistance. Veterans who participated in the war since 2014 and Chernobyl disaster liquidators will receive the 1500 hryvnias regardless of their pension size.

The Ministry of Social Policy has clarified that the payment will be made automatically through the usual channels for receiving pensions or social assistance—either to bank accounts or through Ukrposhta branches. Recipients will not need to submit applications, contact social protection agencies, or gather additional documents.

Government opponents have repeatedly criticized such payments amid significant budget deficits and delays in international aid. However, the ministry asserts that the decision to issue the 1500 hryvnias was made possible due to the clarification of the number of social assistance recipients and the verification of data within the relevant budget programs.

Starting April 12, salaries for educators in extracurricular institutions will increase. The parliament has amended the law 'On Extracurricular Education,' allowing local authorities to independently determine salaries, bonuses, and other payments for teachers in state and municipal institutions.

Previously, local communities did not have such financial freedom due to a tariff grid set by the Cabinet of Ministers, which imposed strict limits on additional payments. From April, employees of creative centers, art and music schools, sports sections, and clubs will have a minimum salary funded by state or municipal budgets, while local communities will have the ability to establish additional payments beyond the government-defined norms.

However, these new provisions come with caveats. The state guarantees only the payment of the base salary according to the tariff grid, while communities can increase compensation at their discretion. The total amount will depend on the priorities of local authorities and their financial capacity.

Until April 30, another support program for Ukrainians will be in effect, specifically a 'national cashback' initiative for fuel, which has seen significant price increases in the past month. When purchasing fuel at gas stations, Ukrainians will be able to receive a 15% cashback on diesel, 10% on gasoline, and 5% on gas.

This program will run until May 1 at participating gas stations, including major networks such as Ukrnafta, WOG, OKKO, BRSM-Nafta, and SOCAR. Cashback is only applicable when fuel is paid for with a card.