The IMF will discuss with Ukraine ways to reduce the shadow economy, which accounts for 45% of GDP
The International Monetary Fund will send a mission to Ukraine in the coming weeks for the first review of the four-year $8.1 billion Extended Fund Facility (EFF) program.
This was announced by IMF spokesperson Julia Kozak.
During the visit, Fund representatives will discuss with Ukrainian authorities the implementation of reform commitments, including tax changes and issues related to mobilizing domestic revenue.
The IMF noted that one of the key issues will be reducing the shadow economy, which, according to the Fund’s estimates, currently accounts for about 45% of Ukraine’s GDP.
The mission will also assess compliance with the conditions of the new financing program, under which Ukraine has already received the first tranche of $1.5 billion.
As a reminder, the introduction of value-added tax for individual entrepreneurs may be postponed based on the results of the International Monetary Fund mission’s work.
The Verkhovna Rada has postponed consideration of the bill on the introduction of VAT for individual entrepreneurs in order to work with the IMF to develop a more balanced approach that will not harm small businesses during the war.
Prior to this, Ukraine and the IMF signed a memorandum on a 5% military levy for an indefinite period and VAT for sole proprietors.
