An IMF mission will travel to Ukraine in the coming weeks. The focus is on VAT for low-value international parcels and individual entrepreneurs (FOPs)
Kyiv • UNN
An IMF mission will visit Ukraine in the coming weeks to assess economic reforms and the tax base. This is necessary for obtaining a loan and EU accession.
International Monetary Fund staff will visit Ukraine in the coming weeks to assess the country's progress in implementing economic reforms and expanding its tax base as part of an $8.1 billion loan. This was announced on Thursday by IMF spokesperson Julie Kozack, reports UNN with reference to Reuters.
Details
Kozack told reporters that it is crucial for Ukraine to mobilize more domestic financing to help cover its "very, very significant" financial needs in addition to the massive external support it has received from donors since Russia's full-scale invasion in February 2022.
She said the Ukrainian authorities need to broaden the country's tax base and bring part of the informal economy, which is estimated to be around 45% of gross domestic product, out of the shadows and into the formal economy.
Kozack noted that Ukraine agreed under the terms of its latest IMF loan program to carry out comprehensive reforms, which are also necessary to achieve Kyiv's goal of becoming a member of the European Union and to secure significant external donor support.
Additionally
The new IMF lending program, approved in February, is scheduled for review in June to determine whether Ukraine is meeting its targets.
Media outlets note that Ukraine is struggling to advance several pieces of legislation aimed at increasing its tax base, including one that involves introducing value-added tax on low-cost parcels from abroad, and another involving the introduction of VAT for self-employed individuals.
Kozack said the VAT measures would be discussed but did not provide any details regarding the IMF's willingness to soften any conditions for the loan.