Kyiv has changed its position regarding the increase in the tax burden on individual entrepreneurs, which was one of the key conditions for obtaining a new $8 billion loan from the International Monetary Fund.
This is reported by Finway
Initial Plans for VAT for Entrepreneurs
In November 2025, Ukraine agreed to raise taxes for entrepreneurs, specifically to introduce a value-added tax (VAT) for those whose annual income exceeds 1 million hryvnias. However, this plan faced significant criticism from the public, prompting the government to reconsider its decision.
Currently, the initiative is opposed by the president, the prime minister, and many members of parliament. Therefore, the Ministry of Finance plans to soften the bill by proposing to raise the income threshold for VAT to ₴2 million or ₴4 million. The Ministry had intended to submit the document for government consideration last month but postponed this step until February 10.
IMF Flexibility and Ukraine’s Next Steps
The International Monetary Fund is showing greater flexibility in negotiations with Kyiv, trying to maintain the financial support program. This opens up opportunities for further negotiations between Ukraine and the IMF. Ukraine has already received preliminary approval for the loan agreement, and the IMF board will review the four-year aid package in February this year. At the same time, the preparation of the tax bill remains a mandatory condition for finalizing the agreements.