The President of Ukraine, Volodymyr Zelensky, has submitted draft law No. 0376 to the Verkhovna Rada regarding Ukraine’s receipt of a loan from the European Union amounting to €90 billion. The document states the necessity to “mobilize internal revenues” to ensure compliance with the conditions for receiving financial assistance.
This is reported by Finway
Main Provisions of the Draft Law and Mechanism for Receiving Funds
The text of the draft law, published on the parliament’s portal, discusses the ratification of the loan agreement and the memorandum of understanding. These documents outline the volumes, installments, and frequency with which European funds will be provided to Ukraine. Additionally, specific requirements that Ukraine must meet to receive the funds are detailed. Among the key conditions are the abolition of tax exemptions for international parcels and the implementation of other changes to tax legislation.
The initiator of the draft law is Volodymyr Zelensky, and the relevant structure for consideration is the Verkhovna Rada Committee on Eurointegration. The agreement stipulates that the EU will provide a loan of €90 billion to the National Bank of Ukraine. The repayment of the funds is planned to be made from reparations from the Russian Federation in the future. The first tranche is expected to amount to €8 billion, distributed in several parts, while the remaining sum will be paid over the coming years. Before each payment, the EU will check Ukraine’s financial stability, the effectiveness of anti-corruption measures, and the funding needs of various sectors.
“The document states that to receive this money, it is necessary to ‘mobilize internal revenues'”.
EU Requirements: Tax Changes and Reforms
The memorandum of cooperation contains a specific list of tax and economic reforms that Ukraine commits to implement. Among the main changes:
- abolition of the tax exemption for international parcels;
- introduction of taxation on income earned on digital platforms;
- extension of the military levy at a rate of 5% for another three years, which will allow approximately UAH 140 billion to be raised annually for the budget;
- tax reform for individual entrepreneurs of the third group, combating business fragmentation, and changes to tax rates;
- modernization of customs, public finances, and the tax system to align with EU standards.
After fulfilling the specified requirements, Ukraine will be able to receive €8.35 billion by the end of 2027. The funds will be disbursed in three tranches: the first – €3.2 billion, the second – €3.7 billion, the third – €1.45 billion.
According to media reports, EU representatives plan to link the provision of credit to Ukraine with the implementation of recommendations from the International Monetary Fund regarding the taxation of parcels. It should be noted that on May 26, the Verkhovna Rada of Ukraine did not support draft law No. 12360, which concerned the taxation of international parcels – currently, purchases worth up to €150, for example on AliExpress or Temu, are not subject to 20% VAT.
The issue of meeting the requirements regarding tax policy remains key for receiving financial assistance from the European Union, as well as for further stabilizing the economic situation in Ukraine.