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News Wire / economy

EU Links Macro-Financial Aid To Ukrainian Tax Changes

Kommersant FM Kyiv 14d14d Impact 8

A plan involving 8.5 billion euros in macro-financial assistance for Ukraine this year may depend on unpopular tax reforms. Authorities must increase VAT to 20 percent for companies on preferential tax systems with annual incomes exceeding 4 million hryvnia. Bloomberg reports that part of the payments will be contingent on these changes. Sources indicate the IMF is insisting on specific conditions that Kyiv has accepted. Ukraine is also attempting to persuade the IMF to delay similar requirements to unlock more than 8 billion euros in additional credit under a separate program. The IMF is reportedly insisting on specific macro-financial terms for aid, which may include Ukraine implementing a VAT on foreign parcels by June. Ukraine requires financial support to survive sustained and continual operations, according to the BBC.

A plan involving 8.5 billion euros in macro-financial assistance for Ukraine this year may depend on unpopular tax reforms. Authorities must increase VAT to 20 percent for companies on preferential tax systems with annual incomes exceeding 4 million hryvnia. Bloomberg reports that part of the payments will be contingent on these changes. Sources indicate the IMF is insisting on specific conditions that Kyiv has accepted. Ukraine is also attempting to persuade the IMF to delay similar requirements to unlock more than 8 billion euros in additional credit under a separate program. The IMF is reportedly insisting on specific macro-financial terms for aid, which may include Ukraine implementing a VAT on foreign parcels by June. Ukraine requires financial support to survive sustained and continual operations, according to the BBC. The European Union intends to condition the disbursement of nearly 8.5 billion euros in macro-financial aid on Ukraine implementing specific tax reforms. The proposal requires Kyiv to impose a 20% VAT on entities operating under preferential tax systems with certain annual revenues. The European Commission is currently reviewing the matter.

Topics

Ukraine tax reform macro-financial aid

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Sources · 7 independent

Kommersant FM

“План затронет 8,5 миллиардов евро макрофинансовой помощи, которая планируется предоставить Украине в этом году. Для получения средства власти должны повысить НДС до 20% для компаний, работающих по льготной системе и имеющих годовой доход выше 4 миллионов гривен.”

Komsomolskaya Pravda

“Efforts coincide with attempts by Ukraine to convince the International Monetary Fund to at least postpone the vision of such a requirement to unlock additional assistance within a separate credit program of more than 8 billion euros.”

Komsomolskaya Pravda

“Источники агентства утверждают, что МВФ настаивает также, что Киев принял... 8 миллиардов евро.”

BBC WS backup

“In order to survive sustained and continual operations, they need financial support.”

TOK FM

“Wspólnota chce uzależnić przekazywanie pieniędzy od wprowadzenia zmian podatkowych dla części firm. Jak czytamy w artykule, zmiany mają dotyczyć warunków wypłaty tak zwanej pomocy makrofinansowej w wysokości prawie 8,5 miliarda euro.”

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