IMF urges Ukraine to reconsider VAT Rate – Danylo Hetmatsev

Source: Danylo Hetmatsev/Telegram

The International Monetary Fund (IMF) has suggested that the Ukrainian government “re-evaluate” its VAT rate to address financial shortfalls and boost revenue.

The news came from Danylo Hetmantsev, chair of the parlimentary committee on finance, taxation, and customs policy.  He revealed that the IMF mission had doubts that even the latest tax hike bill would get Ukraine sufficient revenue for the next year, arguing it that only a ‘review’ of the VAT rate can help fix the situation.

In the meeting with the IMF experts, they also brough up the idea of a possible “extra tax” on banks, though this proposal is still un.

In related news, the IMF has begun talks with Ukraine on an additional $1.1 billion in financing that is part of  Extended Fund Facility (EFF) program. According to reports, the IMF told Ukrianian officials they would need the devaluation of its national currency, lower interest rates, and increase taxes to help address the country’s budget deficit.