The International Monetary Fund (IMF) provided Ukrainian officials with a series of recommendations for filling the state budget for 2026 during the Spring Meetings 2025 in Washington. It was noted that representatives from Ukraine and the IMF discussed the possibility of increasing taxes, particularly the value-added tax (VAT) rate and transitioning to a progressive income tax system (PIT), which would entail higher rates for individuals with higher incomes. The “luxury tax” was also mentioned multiple times.
This is reported by Finway
At the same time, a significant portion of the discussion was dedicated to issues of de-shadowing the economy. The IMF expressed concern about potential tax evasion through the simplified taxation system. Specific details regarding the timing and methods of changing tax rates were not provided.
“We have a potential additional resource even without raising taxes in 2025. We are already focusing on 2026,” commented the Ministry of Finance on communications with the IMF.
There was also discussion about the complete confiscation of frozen Russian assets for the benefit of Ukraine. The head of the financial committee of the Verkhovna Rada, Danilo Hetmantsev, clarified that the issue of increasing VAT is not currently relevant.