2024-09-11T15:22:00+03:00 Economy 2024-09-24T04:00:02+03:00

Ukrainian news

Increase in taxes inevitable - IMF Mission considers it necessary to increase tax revenues

Increase in taxes inevitable - IMF Mission considers it necessary to increase tax revenues

The mission of the International Monetary Fund considers it necessary to increase tax revenues in the state budget of Ukraine.

This is stated in the message of the IMF, the Ukrainian News agency reports.

"Tax revenues must grow in 2025 and beyond to create space for critical spending, preserve needed reserves and restore fiscal stability. Achieving this will require continued tax policy measures and sustained efforts to address existing opportunities for tax evasion, improve compliance legislation and the fight against the shadow economy in accordance with the National Income Strategy (NIS)," the message reads.

In addition, it is noted that legislation to reform the Customs Code should confirm the central role of the Ministry of Finance in overseeing customs, while robust processes should be put in place for the selection of a permanent head of customs, as well as other key management roles.

Negotiations with the participation of IMF experts together with representatives of the Ministry of Finance of Ukraine, the National Bank of Ukraine and other authorities took place in Kyiv on September 4-10, 2024.

As the Ukrainian News agency earlier reported, it became known from the media that the IMF requires Ukraine to raise taxes.

On March 31, 2023, the Board of Executive Directors of the International Monetary Fund approved a four-year program of expanded financing for Ukraine.

The program is implemented in two stages (war and post-war) and provides access to credit funds from the IMF in the amount of SDR 11.6 billion (equivalent to USD 15.6 billion).

Tranches under the program are provided based on the results of viewings.

In 2023, Ukraine received three tranches from the IMF for a total amount of SDR 3.3 billion (USD 4.5 billion).

This year, Ukraine has already received two tranches from the IMF in the amount of SDR 2,333.72 million (about USD 3.08 billion equivalent).

And in general, in 2024, the government will be able to receive four tranches from the IMF with a total volume of SDR 4 billion (USD 5.4 billion equivalent).