The Cabinet of Ministers promises the IMF to resume pre-war taxes and introduce cash registers

10:23 23 December Kyiv, Ukraine

The Government of Ukraine, with the support of the IMF, will work to prepare the restoration of the pre-war state of tax administration and policy.
This is stated in the Memorandum on Economic and Financial Policy of the Monitoring Program with the participation of the IMF Board of Directors.

The memorandum with the IMF was signed by Ukrainian President Volodymyr Zelensky, Prime Minister Denys Shmygal, Finance Minister Serhiy Marchenko and NBU Governor Andriy Pyshny.

According to the memorandum, Ukraine undertakes:
  • Develop an action plan to avoid and repay debt during the 2023 budget and beyond. These are arrears on certain types of public spending, which arose due to the fact that the government directed funds in the first place to finance defense needs;
  • Register in Parliament three laws to increase tax revenues: a law to lift the moratorium on tax audits, a law to abolish the simplified taxation system with payment of 2% of income, and a law to ensure the effective use of cash registers and resume liability for violations in this area. The relevant laws should come into effect from July 1, 2023;
  • Prepare a concept note to reform the social protection system and provide targeted support to all socially vulnerable groups of the population, while maintaining fiscal sustainability;
  • Prepare terms of reference describing the methodology and procedures for future diagnostics of banks, which should identify the need for additional capitalization, as well as determine priorities in working with non-performing loans;
  • Appoint Naftogaz Supervisory Board through a transparent competition.
The program also contains a number of obligations of Ukraine to increase tax revenues, reduce emission financing
budget by the National Bank, increasing the attractiveness of government bonds, as well as improving public administration and transparency of public institutions.

The government also plans to work on building a modern system of income administration, including limiting the possibility of evading personal income tax due to the use of a simplified taxation regime by taxpayers of the third group.