Ukraine agreed to cancel some tax breaks for the new IMF program.

Ukraine has agreed to revise a number of tax breaks in order to receive a new four-year financing program from the International Monetary Fund worth about $8 billion.

Bloomberg reports this.

According to the publication, the IMF has given preliminary approval to the program and is ready to submit it to its board of directors once Ukraine meets conditions for reducing expenditures and strengthening the fight against tax evasion. One of the key requirements is expanding the tax base.

Ukraine, in particular, has pledged to abolish some tax incentives. These changes include the introduction of VAT for individual entrepreneurs with an annual income of over 1 million hryvnias. The government also plans to abolish the current duty-free exemption for parcels from abroad worth up to €150.

Other IMF demands include tax reform and the adoption of a balanced budget for next year.

A final decision on the program is expected as early as next month. However, its adoption depends on the European Union’s ability to agree on a plan for the use of frozen Russian assets. If this mechanism is not approved, IMF financing will also be at risk.

The International Monetary Fund previously offered Ukraine a new $8 billion loan program , which will become an important tool for attracting further international support.

As a reminder, the International Monetary Fund may suspend financial support for Ukraine due to Belgium’s refusal to support the EU’s €140 billion reparations loan.

As is known, the International Monetary Fund is putting pressure on the National Bank of Ukraine , calling for a controlled devaluation of the hryvnia, despite the fact that the country continues to suffer from the war.

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