Ukraine Parliament to Re-Vote on IMF-Mandated Tax Reform Bill Amid Budget Crisis
Key Developments in Ukraine's Tax Reform and IMF Negotiations
By Yuliia Dysa
Upcoming Parliamentary Vote on Tax Reform
KYIV, Sept 7 (Reuters) - Ukraine's parliament will make another attempt next week to vote on a bill introducing a tax on parcels sent from abroad, a senior lawmaker told Reuters, a critical condition for securing International Monetary Fund backing.
The vote is a litmus test on parliament's ability to deliver much needed reforms as Ukraine faces a budget crunch in the fifth year of its war with Russia.
Ukraine's Budget Deficit and IMF Requirements
Scale of the Budget Crisis
With a deficit of more than $32 billion this year, the country needs to accelerate reforms required by its key lenders, including the IMF, to receive money to keep its economy afloat and cover social payments as the war rages on.
Details of the Controversial Tax Bill
But the bill envisaging value-added tax on parcels from abroad worth under €150 ($175) has proved to be divisive, with lawmakers again failing to pass it in first reading last week.
Danylo Hetmantsev, head of the parliamentary committee for finances, taxes and customs, said that the government planned to resubmit the document to parliament on Monday. Next week, lawmakers are expected to review it again, he added.
IMF Mission and International Pressure
Recent IMF Visit and Negotiations
An IMF mission visited Kyiv last week for scheduled talks on the funding review. Lawmakers described talks with the mission as complicated, as it was made clear that no exceptions regarding the bill should be expected.
Statements from Ukrainian Leadership
Parliamentary and Presidential Appeals
Ruslan Stefanchuk, parliament's chairman, stressed during his Monday meeting with lawmakers that critical bills should be passed.
"Decisions on which international assistance to Ukraine and the stability of the state budget depend cannot wait," he said on X, echoing similar calls by President Volodymyr Zelenskiy.
Challenges in Passing Reforms
For over a year, Ukraine has struggled to approve reforms necessary to receive funds from its international backers.
Parliamentarians often accuse the government and president of populism, ignoring priority issues and badly written draft laws when they explain their opposition.
Exchange Rate Information
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(Reporting by Yuliia Dysa; Editing by Toby Chopra)
