IMF mission to arrive in Ukraine soon to assess reforms

An International Monetary Fund mission will arrive in Ukraine in the coming weeks to assess the progress of reforms and the expansion of the tax base under the current $8.1 billion credit program.

This was reported by Reuters, citing IMF representative Julie Kozak.

According to her, the fund’s experts will check how Ukraine is fulfilling its obligations regarding economic reforms stipulated by the financial support program.

Special attention will be paid to tax policy and mobilization of domestic financial resources.

Kozak emphasized that Ukraine needs to more actively attract domestic resources to cover significant financial needs, which remain high against the backdrop of a full-scale war.

The IMF calls one of the key areas expanding the tax base and bringing part of the economy out of the shadows.

According to the fund’s estimates, the informal sector in Ukraine accounts for about 45% of GDP.

The IMF also recalled that within the framework of the credit program, Ukraine undertook to carry out comprehensive reforms related to European integration and obtaining international financial support.

The fund’s new program, approved in February, will be reviewed in June. That’s when the IMF will assess how well Kyiv is meeting its goals.

Among the legislative initiatives that remain under discussion are the introduction of VAT on inexpensive parcels from abroad and taxation of self-employed citizens.