Ukraine must adopt a law introducing VAT on low-value parcels from abroad in order to fulfill the conditions of the program with the International Monetary Fund worth $8.1 billion, the review of which is scheduled for June. This is reported by media outlets citing sources close to the negotiations.
Source: Bukvy
According to interlocutors, Ukraine depends on international financing to cover budget expenditures and fund defense in the war against Russia, and most aid programs require the implementation of structural reforms.
Under the new IMF program approved in February, Ukraine committed to expanding the tax base and carrying out fiscal reforms. A new program review is scheduled for June, which will determine further funding.
One of the key issues has become international parcels. According to sources, without the adoption of the relevant draft law, the program review could be at risk.
Currently in Ukraine, VAT is applied to parcels valued above 150 euros. The proposed changes would introduce taxation on cheaper shipments, which, according to the Ministry of Finance, could bring about 10 billion UAH annually.
At the same time, non-commercial parcels worth up to 45 euros are planned to remain untaxed. The ministry also assures that the changes will not complicate international shipping for citizens.
The draft law has already been submitted to parliament, but its consideration is being delayed due to a lack of political support. Some MPs consider the initiative unpopular.
After consultations with the IMF, the Ukrainian authorities stated that the introduction of the tax is not currently a priority and may be postponed, while negotiations on alternative solutions are ongoing.
Discussion about this post