New IMF program: Is tax hike coming to Ukraine?
Photo: tax increases will be discussed when preparing a new program with the IMF (flickr_com_National_Bank_Of_Ukraine)
The issue of raising taxes in Ukraine will very likely be discussed during the preparation of a new International Monetary Fund (IMF) program, analysts from the ICU group report.
As the analysts noted in a comment to RBC-Ukraine, during the formation of the new program's conditions, the issue of increasing rates for certain taxes will almost certainly be raised.
"However, the final scenario will still depend on the additional amounts of aid that can be agreed upon with partners. A tax increase is a scenario that, under certain favorable conditions, can be avoided," the analysts added.
Due to forecasts of prolonged military actions, Ukraine's economy will require significantly more external financing than is provided for in the current program.
ICU notes that in the coming months, the IMF and Ukraine are expected to seek additional funding from foreign partners.
New IMF program
Sources told RBC-Ukraine that an IMF mission will be working at the end of August. The discussion will focus either on a program review in December or on concluding a new program.
By the end of the year, this program is expected to be prepared for approval by the International Monetary Fund's Executive Board.
