IMF mission will arrive in Ukraine to assess the reforms
An International Monetary Fund mission will arrive in Ukraine in the coming weeks to assess progress on the $8.1 billion loan program.
According to Censor.NET, Reuters reported this, citing IMF spokesperson Julie Kozack.
Review of reforms and preparation for the program review
The mission will assess Ukraine’s progress in implementing economic reforms and broadening the tax base ahead of the program review in June.
The Fund emphasized that Ukraine needs to increase domestic sources of financing to cover significant financial needs, even with international assistance following the outbreak of full-scale war.
It also notes that part of the economy must be brought out of the shadows. According to IMF estimates, the informal sector accounts for about 45 percent of the country’s gross domestic product.
Tax changes and program conditions
Tax changes will be discussed as part of the program. Specifically, these include the possible introduction of a value-added tax on low-cost parcels from abroad, as well as a tax for self-employed individuals.
The IMF emphasizes that these reforms are necessary not only to secure financing but also to advance Ukraine’s path toward European Union membership.
It was previously reported that the Fund’s mission will begin work on the first review of the Extended Fund Facility program in late May. However, the issue of introducing VAT for sole proprietors has been removed from the agenda for now.
