Ukraine is considering legalising and taxing adult online content as a new source of revenue for its war effort, with lawmakers estimating the measure could raise up to $25 million (£19 million) a year, the Wall Street Journal reported.
A bill proposing the decriminalisation of consensual adult pornography passed its first reading in the Verkhovna Rada on 14 July and is awaiting a second vote. The legislation would leave offences involving child sexual abuse material, coercion and exploitation subject to criminal penalties.
Yaroslav Zhelezniak, an opposition MP who chairs parliament’s finance committee and helped draft the bill, said the proposed tax regime could generate as much as $25 million annually. That figure would represent only a small proportion of Ukraine’s defence needs, which the country estimates at about $120 billion a year.
Supporters argue that the reform would bring an established online creator economy into the formal tax system and reduce the risk of criminal prosecution for people declaring income from adult content. Under current rules, the production and distribution of pornography remain illegal, creating a conflict for creators who want to report their earnings.
Figures supplied to Ukrainian tax authorities showed that 7,900 Ukrainians earned more than $131 million through OnlyFans in 2023. Lawmakers say the activity has consequently created millions of dollars in potential tax liabilities, while some creators have moved abroad to operate under clearer legal arrangements.
One Ukrainian creator cited in the report said she had already paid around 40 million hryvnias, or roughly $900,000, in taxes. She said that sum was equivalent to the cost of about 2,000 drones or 100 military pick-up trucks.
Ukraine searches for additional wartime revenue
The proposal comes as Kyiv seeks to increase domestic revenue while relying heavily on foreign financial and military assistance. Parliament has also moved to improve the taxation of income earned through digital platforms, part of a broader effort to bring online earnings into the official economy.
The bill’s supporters say formalisation could widen the tax base, limit opportunities for corruption and allow police to focus more resources on serious offences. Its progress through a second reading will determine whether the proposed framework becomes law.
