Staff from the International Monetary Fund (IMF) will visit Ukraine in the coming weeks to assess progress in implementing economic reforms and broadening the country's tax base as part of an US$8.1 billion loan.
Source: a statement by IMF spokeswoman Julie Kozack, as reported by Reuters
Details: Kozack told journalists that it is critically important for Ukraine to mobilise more domestic financing to cover its "very, very significant" financial needs in addition to the major external assistance it has been receiving from donors since the start of Russia's full-scale invasion in February 2022.
In her view, Ukrainian authorities must broaden the country's tax base and bring part of the grey economy, estimated at approximately 45% of gross domestic product, out of the shadows and into the formal sector.
Tax changes will also be discussed under the programme, including the possible introduction of VAT on low-value parcels from abroad and a tax for the self-employed.
The IMF stresses that the reforms stipulated by the loan programme are necessary not only for obtaining financing but also for advancing Ukraine's path towards European Union membership.
Background:
Ukraine and the International Monetary Fund are discussing alternatives to value-added tax for sole traders to generate budget revenue for the coming year.
The parliamentary finance committee recommended the adoption in its entirety of Bill No. 15111-d on the taxation of digital platforms, which is a structural cornerstone of the new IMF financing programme.
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