Source : INDIA TODAY NEWS
Ukraine is considering legalising and taxing its largely underground pornography industry to raise money for its war against Russia, with the move potentially generating enough revenue to fund around 30,000 drones, The Wall Street Journal reported.
A bill seeking to legalise pornography has cleared its first reading in Parliament and is awaiting a second. Lawmaker Yaroslav Zhelezniak, who chairs Parliament’s finance committee and co-authored the legislation, estimates that taxing the industry could generate up to $25 million annually.
advertisement
The proposed revenue would be modest compared with Ukraine’s overall wartime spending. Kyiv estimates it needs roughly $120 billion annually for defence, but lawmakers say even a relatively small additional stream could help pay for critical military equipment.
Yaroslav Zhelezniak, a lawmaker who chairs Parliament’s finance committee and co-authored the bill, estimates that the potential $25 million in annual taxes could finance approximately 30,000 drones.
The proposal seeks to resolve what lawmakers describe as a legal and tax contradiction. While Ukraine’s adult-content industry has grown rapidly, producing and distributing pornography remains illegal. This means creators who declare their income to tax authorities can potentially expose themselves to criminal prosecution.
The scale of the online industry has nevertheless become difficult to ignore. Data cited by the Journal showed that around 7,900 Ukrainians earned more than $131 million through OnlyFans in 2023, highlighting the potential tax base.
Authorities’ attempts to collect taxes from creators have also exposed the legal dilemma. Some creators who disclosed their earnings reportedly subsequently faced scrutiny over both tax-related issues and alleged violations of pornography laws.
The situation has also raised concerns over corruption. The Journal reported cases in which Ukrainian officials in three regions were allegedly found to have accepted bribes from people involved in the adult-content business.
Supporters of legalisation say bringing the industry under regulation would allow the government to collect taxes, reduce opportunities for corruption and free law-enforcement resources for wartime priorities.
One creator cited in the report, Svitlana Dvornikova, said she had paid nearly about $900,000 in taxes. She argued that the money was comparable to the cost of thousands of drones or military vehicles.
Dvornikova had earlier challenged the prosecution of adult-content creators through a petition published on Ukrainian President Volodymyr Zelensky’s website. The petition reportedly gathered more than 25,000 signatures within a week, after which Zelensky said Parliament would consider the proposed legislation.
The bill passed its first reading in July and now faces a second reading.
For Kyiv, the proposal comes as the government continues to seek additional domestic revenue while relying heavily on foreign military and financial assistance. Even if the projected $25 million represents only a fraction of Ukraine’s defence needs, supporters see the legalisation of an already thriving industry as a way to turn an existing underground economy into another source of funding for the war.
– Ends
SOURCE :- TIMES OF INDIA
