This article explores the legal nature, classification, and fiscal role of parafiscal charges in the system of local public finance in Ukraine. It identifies the main features of such instruments, analyses their divergence from classical tax and non-tax revenues, and evaluates their practical use by local authorities. Comparative insights from selected European countries are provided. The study reveals significant legal uncertainty and risks of uncontrolled fiscal pressure at the local level, offering recommendations for clearer regulation and alignment with relevant European standards in the broader context of fiscal decentralisation, local governance reform, and sustainable development of territorial communities.