Bill could bring an estimated $25 million into state coffers by bringing the adult content industry into the legal economy.
Ukraine is considering a surprising way to bring more money into state coffers as it continues funding its war against Russia: decriminalising pornography and taxing the industry.
A bill seeking to remove criminal penalties for producing and possessing pornography is awaiting a second reading in parliament. It passed its first reading in July by 231 votes to eight and remains on the legislative agenda for the current session, which runs through February.
Ukraine is one of only a handful of European countries where the production or possession of pornography remains a criminal offence. The law currently allows prison sentences of up to seven years. Bulgaria, Iceland, Lithuania, Belarus and Russia also retain criminal restrictions on pornography.
Millions in potential tax revenue
Supporters of the legislation estimate that bringing the industry into the legal economy could generate around $25 million in annual tax revenue, according to figures from Ukraine’s State Tax Service.
Lawmakers have pointed to the money as a potential source of funding for Ukraine’s military as the country faces continued wartime spending and a budget shortfall estimated at $27 billion.
Yaroslav Zhelezniak, one of the bill’s authors, argued during its first reading that the existing system leaves significant income outside the reach of the state.
He said the estimated tax revenue could finance around 30,000 drones for the Ukrainian military.
OnlyFans puts the issue in focus
The debate has gained particular attention because of the scale of Ukraine’s OnlyFans industry.
According to tax data obtained from the platform’s UK-based parent company, almost 7,900 Ukrainian creators earned more than $131 million through OnlyFans in 2023.
The figures came to the attention of Ukrainian tax authorities, which subsequently began contacting creators and demanding taxes on their earnings.
One of those creators was Svitlana Dvornikova, an OnlyFans personality with around one million subscribers. She filed a petition calling for pornography to be decriminalised after authorities demanded that she pay approximately $900,000 in taxes on her 2024 income.
Dvornikova later faced criminal proceedings, while authorities also raided her home and seized electronic devices. Her case has since been put on hold while parliament considers the proposed legislation.
From petition to parliament
Dvornikova's petition collected the 25,000 signatures required for the Ukrainian government to formally respond.
She has argued that bringing the industry into the legal economy would allow creators to operate openly, pay taxes and contribute to the country's wartime finances without facing criminal prosecution.
The proposed changes would therefore address both the legal status of adult content and the large amount of income currently generated outside the formal tax system.
For supporters of the bill, the issue is not simply about allowing pornography. They argue that an existing industry is already generating substantial income, and that the state could collect part of that money to help finance the country's ongoing war effort.
With information from the New York Post.
