IMF Demands Ukraine Scrap Tax Exemptions by End-March

The International Monetary Fund is demanding that Ukraine amend legislation by the end of March to eliminate tax-evasion loopholes, the lender’s Chief of Mission to Ukraine Gavin Gray told reporters in Washington DC.

• The IMF not only seeks to reduce the size of Ukraine’s shadow economy but also to remove the “unfair advantage” created by such tax loopholes
• The IMF also urged Ukraine to increase the flexibility of its exchange rate
• NOTE: Among other measures, Ukraine’s government committed to imposing VAT on self-employed entrepreneurs whose annual revenue exceeds a certain threshold
• The IMF accepts Ukraine increasing this threshold to €85,000($100,300) ...