Kharkiv Mayor Ihor Terekhov, who also serves as chairman of the Association of Frontline Cities and Communities, believes it is necessary to raise the minimum wage while simultaneously significantly reducing the VAT on basic foodstuffs to prevent further impoverishment of the Ukrainian people.

"The government must act now. The minimum wage must be raised to at least UAH 10,000, and the minimum pension to UAH 6,000. To ensure that this increase isn't eroded by rising prices, VAT on basic food items must be reduced from 20% to 5%, and we must ensure that the difference is reflected in prices rather than remaining as profit for retail chains. It is also necessary to expand state reimbursement for the cost of essential medications," Terekhov said on his Telegram channel.

He said the significant increase in the proportion of Ukrainians living below the poverty line over the past four years (from 2021 to 2025) is linked to the war.

"According to World Bank estimates, 41.6% of Ukrainians were living below the poverty line in 2025. In 2021, that figure was 20%. Over the course of four years, poverty has more than doubled. The main reason is obvious: the war. The enemy is destroying energy infrastructure, businesses, warehouses, and homes. Each such strike eventually shows up on our bills: in the form of higher prices for food, fuel, medicine, and utilities. People are losing their jobs, savings, and property. Sometimes all at once," Terekhov said.

He also said the gap between the poor and the wealthy is widening.

"But the war affects people unevenly. Those with savings can still hold on. For those who lived paycheck to paycheck, a single illness or job loss is enough to push them below the poverty line. The gap between people is widening, and the poorest are becoming even poorer," Terekhov said.

He also said the measures he proposed should not be accompanied by the introduction of new taxes or increases in existing ones.

"No new taxes on people. VAT for sole proprietors or an increase in VAT on goods and services will only take away from citizens what the state is trying to give them. In the fight against poverty, this is not a cure – it's poison," Terekhov said.

However, he did not specify the sources of funding he proposes to use to raise the minimum wage, lower the VAT on basic food items, and expand state reimbursement for the cost of medications.