IMF delegation led by chief of mission meeting Ukrainian leaders in Kiev

MOSCOW. March 18 (Interfax) - An International Monetary Fund (IMF) team led by Gavin Gray, the head of the IMF mission to Ukraine, is beginning meetings with Ukrainian leading officials in Kiev on Wednesday, IMF Resident Representative in Ukraine Priscilla Toffano told Ukrainian media.

The discussions will concern macroeconomic policies and key structural reforms, Toffano said in a statement for the media.

In line with the terms of the Extended Fund Facility (EFF) for Ukraine, which the IMF approved at the end of February, Ukraine must adopt a package of tax measures by the end of March 2026, under which entities entitled to simplified taxation whose annual income exceeds UAH 4 million would have to register as VAT payers starting January 1, 2027.

The Finance Ministry's initial initiative setting the threshold at UAH 1 million was reviewed following a wave of criticism from the business community. At the moment, the government has not even submitted this bill to the Verkhovna Rada.

The Rada also turned down a bill on the taxation of income received through electronic platforms, which was also part of the agreements with the IMF. The bill was supported by only 168 lawmakers, while the minimum votes needed for its passage is 226.

"A substantial part of international financial support envisions the implementation of conditions and reforms agreed upon together with partners. This is why the Finance Ministry highlights the importance of consistently fulfilling obligations. This is an essential precondition for attracting the agreed financing in full and ensuring the stable functioning of the state finance system," the ministry said in comments for the media.

Amid the crisis, the government spends all the state budget's internal resources, including tax and customs revenues, as well as funds from the placement of government bonds, for financing the Ukrainian Armed Forces' needs, it said.