Finance
Ukraine's PM Says IMF Agreed Raising Tax on Self-Employed Is 'not Constructive'
Published by Global Banking & Finance Review®
Posted on April 19, 2026
2 min readLast updated: April 19, 2026
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Ukrainian PM Yulia Svyrydenko said on April 19 that the IMF agreed that introducing VAT on self‑employed individuals was “not constructive,” acknowledging its political sensitivity. She indicated the measure will be revisited through alternative revenue options for the 2027 budget.
IMF Agrees with Ukraine: VAT on Self-Employed Deemed Not Constructive
IMF and Ukraine Discuss VAT Tax Reforms for Self-Employed
Background of the VAT Proposal
KYIV, April 19 (Reuters) - Ukrainian Prime Minister Yulia Svyrydenko said on Sunday that the IMF had agreed during talks in Washington that the introduction of VAT tax on self-employed individuals was "not-constructive" due to the sensitivity of the issue in Ukraine.
Loan Conditions and Parliamentary Response
The tax was part of a raft of reforms agreed with the Fund as conditions for an $8 billion loan approved in February. Ukrainian officials have since warned that its introduction would prove highly unpopular and it lacked the required support in parliament.
Statements from Ukrainian Officials
Prime Minister Svyrydenko’s Remarks
"During the Spring Meetings, we found understanding from our partners that this is indeed a sensitive topic and a not-constructive idea," Svyrydenko said on the Telegram app, adding she had held consultations with both IMF and European officials.
Future Budgetary Measures
"We will continue to work together on the necessary decisions and explore other alternative measures to ensure the revenue part of the budget for 2027."
Reactions from Legislators
Several Ukrainian legislators suggested on social media on Sunday that a decision regarding the tax had only been postponed, not cancelled.
(Reporting by Yuliia Dysa; Editing by Daniel Flynn)
Key Takeaways
- •Ukraine’s Prime Minister stated the IMF accepted that VAT for self‑employed is politically sensitive and not constructive during Washington Spring Meetings, signaling flexibility from the Fund. (newsukraine.rbc.ua)
- •The VAT measure on sole proprietors was part of conditions tied to an $8 billion IMF loan approved in February but faced strong opposition in Parliament and among officials, including the PM herself. (newsukraine.rbc.ua)
- •While Kyiv continues to seek alternatives for boosting budget revenues in 2027, Parliament has so far stalled on several IMF‑linked tax reforms, putting future tranches—like a June‑scheduled $700 million—at risk. (kyivindependent.com)
References
Frequently Asked Questions about Ukraine's PM says IMF agreed raising tax on self-employed is 'not constructive'
1What tax reform in Ukraine did the IMF consider 'not constructive'?
The IMF agreed that introducing a VAT tax on self-employed individuals in Ukraine was 'not constructive' due to its sensitivity.
2Why was the self-employed VAT tax proposed in Ukraine?
The VAT tax on self-employed individuals was proposed as part of reforms required for Ukraine to receive an $8 billion IMF loan.
3Has the tax on self-employed individuals in Ukraine been canceled?
According to some Ukrainian legislators, the decision on the self-employed tax has only been postponed, not canceled.
4What alternatives are being considered for Ukraine's budget revenue?
Ukrainian officials said they are working with the IMF and European partners to explore alternative revenue measures for the 2027 budget.
5Why is the proposed VAT tax on the self-employed unpopular in Ukraine?
The tax lacked parliamentary support and was considered highly sensitive and unpopular among Ukrainian citizens.
