Ukraine weighs legalising porn to fund Drones and Defense:Report

Ukraine is considering legalizing and taxing an industry that currently operates largely outside the formal economy, potentially generating up to $25 million in annual revenue.A bill that would legalize pornography in Ukraine is awaiting a second reading in parliament after passing its first vote in July. Supporters are framing the proposal partly as a way to bring an existing online industry into the tax system at a time when Kyiv faces enormous wartime spending requirements.
according to a report by The Wall Street Journal. Ukrainian lawmaker Yaroslav Zhelezniak argues that bringing the country's adult entertainment industry into the legal economy could generate as much as $25 million in tax revenue. Zhelezniak, who chairs the Ukrainian Parliament's finance committee, estimates that the money could be enough to fund as many as 30,000 drones for the war effort.
Ukraine already has a sizable online creator economy operating under legal uncertainty. Data supplied to tax authorities showed 7,900 Ukrainians earned more than $131 million through OnlyFans in 2023, creating millions of dollars in potential tax liabilities. Supporters of legalization argue that bringing the activity into the formal economy could expand the tax base, reduce opportunities for corruption and allow authorities to redirect law-enforcement resources during the war.
Ukraine prohibits the production, distribution, and possession of pornography, with penalties of up to seven years in prison. At the same time, tax authorities are pursuing Ukrainians earning money from adult content, creating a legal contradiction for creators who disclose their income.