Ukraine considers legalising pornography to raise $25m in tax revenue to fund war against Russia

• Ukraine’s parliament is considering a bill to legalise and tax pornography.

• Supporters estimate the move could generate about $25m yearly in tax revenue.

• Lawmakers say the funds could support defence needs during the war with Russia.

• Critics have raised concerns over the social impact of the proposal.

Ukraine is considering a controversial plan to legalise and tax pornography as lawmakers look for new sources of revenue to support the country’s ongoing war against Russia. The proposal could generate an estimated $25 million annually in tax revenue, according to supporters of the bill. 

The proposed legislation seeks to bring Ukraine’s largely underground adult-content industry into the formal economy by removing criminal penalties for the production and distribution of pornography involving consenting adults and allowing the government to collect taxes from the industry. 

The bill, backed by Ukrainian lawmaker Yaroslav Zhelezniak, has passed its first reading in parliament and is awaiting further consideration. Zhelezniak, who chairs Ukraine’s parliamentary finance committee, said regulating and taxing the industry could provide additional funds for defence needs. 

According to reports, Zhelezniak estimates the move could bring in about $25 million every year, which he said could help finance military equipment, including thousands of drones used in Ukraine’s war effort. 

The proposal comes amid a debate over Ukraine’s current laws, where producing, distributing or possessing certain pornographic material remains illegal, yet thousands of creators reportedly earn income from online adult-content platforms. Supporters argue that the current system creates a contradiction because creators can face legal risks while the state loses potential tax revenue. 

Reports cited by supporters of the reform said thousands of Ukrainian creators earned significant income through platforms such as OnlyFans. One estimate reported that about 7,900 Ukrainian creators earned more than $131 million in 2023 through the platform. 

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Supporters also argue that legalisation could reduce corruption and provide clearer protections for adult-content creators who currently operate in a legally uncertain environment. 

However, the proposal has faced criticism from opponents who argue that legalising pornography raises social and ethical concerns. Some critics have questioned whether revenue from the industry should be used to support military activities during the war. 

If approved, Ukraine would join countries that regulate and tax adult entertainment industries rather than ban them outright, while supporters say the main goal is to bring an existing underground economy into the legal system and generate additional funds during wartime.