The Ukrainian parliament adopted a package of laws related to key requirements of the European Union and the International Monetary Fund. The changes are necessary to provide billions of dollars in financial assistance at a time when Kiev is experiencing a shortage of defense funds and to cover budget expenses.
The approved texts provide for higher taxation of shipments from abroad, greater transparency in e-commerce and changes to the rules for financial monitoring of politicians.
“The laws approved today establish a modern model for taxation of e-commerce, which is in line with the European Union's approach and is fair to domestic businesses,“ said Finance Minister Serhiy Marchenko.According to him, the reform is part of the cooperation program with the IMF and is a condition for macro-financial support from the EU.
New rules for shipments from abroad
The Ministry of Finance announced that the changes provide for a 20 percent value-added tax on shipments from abroad. The measure will not come into force before July 2027.
According to estimates by lawmakers, the new tax could provide between 20 billion and 30 billion hryvnias of additional revenue to the budget. The changes are also presented as a way to level the playing field between foreign e-commerce sellers and local businesses.
Budget shortfall
Ukraine is facing budget pressure due to rising spending on weapons, drones and ammunition, as well as damage to businesses and infrastructure caused by Russian strikes.
Domestic tax revenues fell by 32 billion hryvnias, or about $711 million, in August and September. Against this backdrop, the government has postponed some budget spending, including for reconstruction activities and preparations for winter, due to a lack of liquidity.
By the end of the year, Ukraine expects about $29 billion in financial support from the European Union. The assistance is related to the implementation of agreed reforms, including laws adopted by parliament.
Prime Minister Serhiy Koretsky said that the results of the parliamentary work give reason for optimism. However, he stressed that much work remains to fulfill all the creditors' requirements.
Sources: bta.bg