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The IMF allowed the cancellation of the 2% “simplified” loan to be postponed. The tax policy will probably be changed from August 1

Author:
Sofiia Telishevska
Date:

The Board of Directors of the International Monetary Fund (IMF) agreed to give Ukraine more time to adopt the government bill No. 8401, which will abolish the 2% flat tax. However, the IMF hopes that the Verkhovna Rada (Ukrainian Parliament) will do this by the end of July, said the head of the IMF mission in Ukraine Gavin Gray.

"We understood that the authorities need additional time to get the approval of the parliament... So we expect this law to be passed by the end of July," he noted at a briefing after the IMFʼs decision to first review the EFF program and allocate Ukraine a second tranche of $890 million.

At the same time, the head of the mission emphasized that this is a very important legislative act in the context of the program built on the gradual mobilization of domestic revenues.

Among the next important structural beacons of the program, he named reforms in the field of management and fight against corruption, in particular, the adoption in July of the law on the restoration of the declaration of public officials who are not directly involved in mobilization and military actions, with the restoration of the function of the NAPC for their inspection and verification.

The head of the mission added that an important structural beacon in September will be the amendment of the Financial Monitoring and Anti-Money Laundering Act to restore enhanced due diligence on politically significant persons (PEPs) in accordance with a risk-based approach consistent with FATF standards.

The second review of the EFF program is tentatively planned for the end of November — beginning of December.

The first deputy chairman of the committee on finance, tax and customs policy Yaroslav Zheleznyak informed that the parliament has started consideration of draft law No. 8401 — 1 900 amendments have been made to it.