The Verkhovna Rada will not be able to restore pre-war tax levels by 1 July – MP

The return of the tax system to pre-war policy will not occur from 1 July, as was planned according to the memorandum on economic and financial policy with the IMF.

This was reported by the First Deputy Head of the Committee on Finance, Taxation and Customs Policy, Yaroslav Zhelezniak.

The Verkhovna Rada will not manage to abolish by July the "single tax of 2% and benefits for tax payments for groups 1 and 2, to restore documentary checks and reintroduce penalty sanctions for violation of the use of cash registers".

"I don't know what the new date will be, but it definitely won't be 1 July," Zhelezniak wrote.

Background. The Ukrainian side committed to the IMF at a stage when active military actions would decline, to take measures that would expand opportunities for investment, strengthen the energy sector, allow a return to a flexible exchange rate, reduce dependence on external financing, and bring Ukrainian tax legislation closer to EU legislation.

An important step on this path should be the approved norms of the bill №8401 which provide for the abolition of the preferential rate of 2% for single taxpayers (it was introduced in March 2022), the restoration of full-scale tax audits and the return of fines for businesses for violations associated with the use of cash registers. The Cabinet of Ministers and MPs must also solve the problem of accumulated tax arrears, the share of which at the end of 2022 amounted to 1.5% of GDP.