The IMF assessed Ukraine’s fiscal policy

Ukraine’s fiscal policy must be improved, despite the modernization carried out in recent years, they say in the background.

The IMF believes that Ukraine’s fiscal policy should be improved by introducing effective instruments, despite modernization. This was stated in the official IMF message on Tuesday, November 24.

“Tax policy in Ukraine is carried out in two directions at once. On the one hand, over the years, considerable work has been done to gradually improve and update the tax system. On the other hand, the main provisions of the existing system are being questioned, “the fund said.

In Ukraine, in particular, “serious efforts” were made to modernize the international aspects of income tax, as well as to approximate the standards of the OECD (Organization for Economic Cooperation and Development), but some circles in Ukraine ” They persistently seek to abolish the corporate income tax. “

The fund explained that the main idea behind these proposals is to introduce a tax on withdrawn capital.

“In previous reports, the IMF’s Public Finance Department opposed the adoption of a tax on withdrawn capital as it would lead to significant revenue losses,” the document says.

At the same time, Ukraine recently adopted accelerated depreciation of fixed capital investments, which is a “more specific tax incentive” that should produce the expected results.

Finally, a positive for tax policy is called the Voluntary Disclosure Program (VDP), which should allow taxpayers to liquidate financial and physical assets for a specified amount, for which no income taxes were paid.

Let us remind you that previously Shmygal discussed with the IMF Ukraine’s progress under the Stand-by program. Denis Shmygal says that “IMF support is an indicator of stability for Ukraine” and expects a positive signal from the fund.

There is no section yet. What awaits Ukraine without IMF money?

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