Ukraine Lawmakers Reject Tax Bills Risking Billions in Aid
Ukrainian lawmakers rejected legislation to tax foreign postal deliveries, jeopardizing $700 million from the IMF and $4 billion in European Union assistance.
The Cabinet of Ministers of Ukraine rejected legislation on Tuesday that would have removed tax exemptions on postal deliveries from abroad. The bills sought to introduce a value-added tax on foreign parcels, a measure required by the International Monetary Fund and the European Union as conditions for continued financial support.
Lawmakers argued that the new tax would negatively impact a population that relies heavily on overseas shipments. The legislative failure occurred while IMF staff were visiting Kyiv to discuss reform commitments and the 2027 draft budget.
As a result of the vote, Ukraine risks losing a $700 million tranche from an $8.1 billion IMF program. Additionally, the country may lose approximately $4 billion in macro-financial assistance from the European Union that was scheduled for the third quarter.
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