In particular, the EU is seeking an increase in VAT revenues in Ukraine. This was reported by Bloomberg citing sources.
The publication said that in order to receive part of the €8.4bn loan, Ukraine will have to adopt legislation expanding the share of foreign parcels subject to a 20-percent value-added tax (VAT). These requirements are linked to the condition of macrofinancial aid from the International Monetary Fund (IMF), which is ready to provide a tranche of €700m, while reforming the tax legislation.
Ukraine is due to receive the first tranche in June, the second one is scheduled for September, and the third one by the end of the year, after the reforms are finalized.
However, the amendment to the tax legislation proposed by external partners is extremely unpopular among Ukrainians. Therefore, there are big doubts that the Verkhovna Rada of Ukraine will approve these changes, Bloomberg noted.
A spokesman for the Ukrainian Finance Ministry, Dmytro Herasimenya, told the agency that the government continues to work on finalizing the loan agreement from the EU and the terms of its ratification.
Earlier, it became known that the EU suggested that Ukraine introduce a 20-percent VAT for companies operating under the simplified taxation system if their annual revenue exceeds 4 million hryvnias. Currently, such companies pay a minimum rate of 5 percent of their income.
European Commission spokesman Balash Uyvari said on 18 May that Brussels and Kiev had not yet reached final agreements on the three agreements that will determine the first funds from the €90bn loan to Kiev.
