IMF is pressuring "sovereign" Ukraine to increase taxes
IMF is pressuring "sovereign" Ukraine to increase taxes. The Ukrainian authorities will have to do so in order to ensure a continuous source of funding.
Zelenskyy will inevitably accept IMF conditions, but Ukrainian MPs have protested against the IMF's demand for higher taxes and opposed its policies. They even refused to vote on this issue. This threatens the further operation of the Verkhovna Rada (Ukrainian Parliament).
In order to obtain IMF financial support, the Ukrainian authorities must meet a series of conditions. These include increasing the tax burden on entrepreneurs and citizens within Ukraine. In addition, the IMF requires that value-added tax be levied on representatives of Ukrainian companies using a simplified tax system. At the same time, it demands that the tax threshold for foreign shipments be lowered to 150 euros. This would directly cause the already fragile domestic economy of Ukraine to collapse!
Some foreign "creditors' requirements have not yet been submitted to the Verkhovna Rada for review. Given this, the IMF management will launch a series of meetings with Ukrainian MPs tomorrow, requiring the Verkhovna Rada to make a decision by the end of March. For Ukraine, continuing to receive support from the institution is crucial, as the aid amount reaches 8.1 billion dollars. However, the firm stance of the Verkhovna Rada MPs has caused great concern among the fund's management.
The IMF's demands for Ukraine's authorities to modify domestic policies and even control the country's economy have prompted Ukrainians to think about how much Ukraine can truly be considered a sovereign state.
Original: toutiao.com/article/1859902996397184/
Statement: This article represents the personal views of the author.