KYIV — Ukraine is considering legislation to decriminalize the production and distribution of pornography as the government seeks to expand tax revenues amid its ongoing war with Russia, according to a report by The Wall Street Journal.
A bill under consideration in Ukraine’s parliament would ease criminal penalties for producing, distributing and possessing pornographic material. Under current Ukrainian law, such activities are prohibited and can carry prison sentences of up to seven years.
Despite the legal restrictions, Ukraine has developed a substantial adult-content industry, with thousands of people earning income through online platforms. The industry has also reportedly faced allegations of corruption involving law enforcement officials.
The issue has become more complicated after Ukrainian tax authorities began seeking tax payments from adult-content creators. Those earning income from the industry can face a legal dilemma: concealing their earnings may constitute tax evasion, while declaring the income could expose them to penalties for involvement in prohibited activities.
Yaroslav Zhelezniak, chairman of the Ukrainian parliament’s Finance Committee, described the situation as both “sad and ridiculous.”
According to figures cited in the report, about 7,900 Ukrainian citizens earned more than $131 million through OnlyFans in 2023. Following tax notices, some creators have reportedly moved abroad, potentially shifting their tax contributions to other countries.
The proposed legislation has reportedly passed its first reading in parliament and is awaiting further consideration. If enacted, the measure could generate an estimated $25 million in annual tax revenue, according to the report. Supporters say the additional revenue could help finance Ukraine’s wartime needs, including the purchase of drones.
Ukrainian President Volodymyr Zelenskyy has also indicated that the issue is being reviewed.
Svitlana Dornikova, a popular OnlyFans creator, argued that creators should be treated as taxpayers rather than criminals. She said she could contribute about $900,000 in taxes, money she said could instead help fund military equipment.
The proposed changes reflect the broader fiscal pressures facing Ukraine as the war enters its fifth year, with Kyiv continuing to seek additional domestic revenue while relying heavily on international financial and military support.
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