Ukraine is advancing toward unlocking a new IMF financing programme, with several critical reforms and legislative measures outlined as prior actions, IMF Communications Director Julia Kozak reported.
Key measures include expanding the tax base through legislation taxing income earned on digital platforms, closing customs loopholes for imported consumer goods, and phasing out VAT registration preferences for high-income individual entrepreneurs. Kozak also highlighted steps to combat the informal economy, including boosting competition in public procurement and closing gaps in the current labor code, during the Fund’s regular briefing on Thursday, according to Interfax-Ukraine.
The prior actions also involve the adoption of Ukraine’s 2026 state budget, securing sufficient financing guarantees from international donors, and formal approval by the IMF Executive Board. Kozak noted that the IMF team is reviewing the full text of the budget passed by the Verkhovna Rada on December 3, describing the preliminary assessment as generally aligned with programme commitments.
The Fund emphasized Ukraine’s commitment to maintaining a well-resourced, independent anti-corruption framework. Authorities have also agreed to continue reforms of the tax and customs services, including appointing a new customs head, improving IT systems for efficiency, restoring public trust, and increasing revenue to support post-war reconstruction. Reforms for state-owned enterprises are also on the agenda, focusing on financial planning, reporting, auditing, and leadership nomination procedures for state enterprises and banks.
Finance Minister Serhiy Marchenko said that several bills aimed at boosting budget revenues will be submitted to the Rada in the coming weeks.
“We had an active discussion, and we will continue this discussion with you in the coming days and continue working in December to pass the necessary laws to fund this budget,” he stated.
Proposals under consideration include taxation of sales via digital platforms, lowering the customs threshold for imported parcels from EUR 150 to the European standard of EUR 45, and ending the VAT registration exemption for individual entrepreneurs whose annual income can currently reach UAH 9.34 million. The last two measures have drawn significant criticism, though Marchenko stressed they are unavoidable. The VAT exemption for individual entrepreneurs is set to be canceled starting in 2027, allowing some flexibility to discuss the simplified taxation system in 2026.
