28 Dec 2023 10:01

Ukrainian govt approves national revenue strategy for 2024-2030

MOSCOW. Dec 28 (Interfax) - Ukraine's Cabinet has approved a national revenue strategy for 2024-2030, which is one of the structural benchmarks of the International Monetary Fund's the Extended Fund Facility for the country, Finance Minister Sergei Marchenko said.

The strategy includes measures to strengthen Ukraine's fiscal capabilities, adapt tax and customs legislation to European Union standards and create incentives for a steady recovery and economic growth, Ukrainian media reported Marchenko as saying on social media.

Ukraine must first of all restrict the tax and customs system's interference in business activities, he said. Only after this, having restored entrepreneurs' and society's trust in fiscal authorities, will the government be able to change the principles of administration and tax policy, Marchenko said.

He also said the revenue strategy was developed by the Finance Ministry together with other ministries and agencies, with input from representatives of businesses and in consultation with international partners, including the IMF, World Bank and OECD. All the measures in the strategy take into account EU tax and customs standards, Marchenko added.

The IMF said earlier that the development of a national revenue strategy was one of three preliminary conditions for the approval of the EFF program. In the second stage of the EFF, which is expected to begin in 2025, tax and budget policy is supposed to be focused on key structural reforms to secure medium-term revenue by implementing the national revenue strategy, as well as improving management of public finances and reforming governance of public investment to support recovery.

The $15.6 billion EFF for Ukraine was approved in March 2023 and the first tranche of $2.7 billion was released in early April, the second tranche of $890 million was released in early July and third tranche of $900 million was released in mid-December. Another three tranches are scheduled for 2024, including $2.2 billion in mid-June, $1.1 billion in early September and another $1.1 billion in December.