With the war against Russia continuing, Ukraine urgently needs large sums of funding. Amid this situation, the country is considering a new proposal to raise money needed for the war effort — legalizing the pornography industry, which is currently illegal in the country.
Ukrainian parliament member Yaroslav Zhelezniak is backing this proposal, arguing that turning the country’s adult entertainment sector into a legal business and taxing it could generate substantial revenue for the government. Zhelezniak estimates that this sector could bring in roughly $25 million in tax revenue, which he says could be used to purchase around 30,000 drones for use in the war. Zhelezniak chairs Ukraine’s parliamentary finance committee.
Currently in Ukraine, producing, possessing, or distributing pornography is illegal, carrying a potential prison sentence of up to seven years depending on the severity of the offense. However, despite the law, the adult content sector has not stopped entirely in the country, with the report noting that it continues to operate covertly. There are also allegations that the business continues with the cooperation of some corrupt police officers.
Ukrainian authorities recently began collecting taxes from individuals producing adult content, but this has created an unusual problem: if these individuals declare their income to the government, they are required to pay taxes on it, but doing so simultaneously exposes them to prosecution for participating in illegal pornography activities. Speaking on this, Zhelezniak said that if they don’t pay taxes, they face tax evasion charges, and if they do pay taxes, they face charges for violating pornography laws — calling it a highly unusual situation.