Ukraine will accelerate tax reforms to obtain IMF funding
Ukraine has agreed to a series of tax reforms to secure a new loan package from the International Monetary Fund (IMF). Owners of frozen Russian assets must consent to their use for the loan to receive final approval.
Thanks to a staff-level agreement announced by the IMF on November 26, Ukraine can expect funding worth about $8 billion. The condition for receiving the funds is the implementation of several fiscal changes, including the cancellation of tax benefits for businesses and households. In particular, it is planned to introduce a value-added tax for self-employed entrepreneurs with an annual income of over 1 million hryvnias.
According to Bloomberg sources, these measures are aimed at preventing tax evasion, as this loophole was often used by large Ukrainian companies to minimize tax liabilities. The authorities also intend to cancel the benefits on international parcels worth up to 150 euros, which are currently exempt from customs duties.
Experts believe that these reforms could increase the transparency of the Ukrainian economy and contribute to additional funds flowing into the state budget. Obtaining IMF funding will be a positive signal for international investors and may strengthen the country’s economic stability.
Ukrainian lawmakers must also pass a balanced budget for 2026, which is another prerequisite for the approval of the IMF funding program. Moreover, the fate of the agreement depends on the decision of the European Union regarding the use of frozen Russian assets, which is expected to be made next month. This decision is critically important, as its failure could jeopardize IMF funding.
| Main Measures | Goals |
|---|---|
| Cancelling tax benefits | Increasing budget revenues |
| Value-added tax for the self-employed | Preventing tax evasion |
| Canceling benefits on international parcels | Control of import duties |
