“The IMF was sympathetic to the sensitivity of the issue of introducing VAT taxation for individual entrepreneurs – both for society and for parliament,” Sviridenko wrote.
According to her, during the Spring Meeting in Washington (USA), the Ukrainian delegation held a series of consultations with the IMF and European partners and was able to find understanding among partners that this is indeed a “sensitive topic” and “is not a constructive idea,” Sviridenko noted.
She also recalled that President Vladimir Zelensky has repeatedly expressed a similar position during communications with IMF representatives.
The Prime Minister added that the government, together with international partners, will work on alternative solutions to ensure budget revenues, including for 2027.
Context
On February 27, Prime Minister of Ukraine Yulia Sviridenko announced that the IMF Board of Directors approved a new four-year Extended Financing Program (EFF) for Ukraine in the amount of $8.1 billion. On March 3, Ukraine received the first tranche under the program – $1.5 billion.
On March 10, the Verkhovna Rada did not support bill No. 14025, which provided for a number of tax changes. This was reported by People's Deputy from Golos Yaroslav Zheleznyak. According to him, for the second reading the government planned to submit amendments to the document taking into account the requirements of the IMF, namely: to propose the abolition of the exemption for parcels up to €150, the introduction of VAT for individual entrepreneurs, and to fix the increased military duty at the level of 5% even after the end of martial law in the country. However, only 168 people's deputies voted for the document.
As Ukrayinska Pravda wrote on March 12, deputies of the Servant of the People faction sabotaged the vote for draft laws necessary to receive assistance from the IMF, fearing suspicion from anti-corruption authorities.
