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 With current tax legislation, Ukraine risks being left without IMF finance program, - Finance Minister Jaresko

Ukraine's current tax legislation will lead to 68-bln UAH budget losses in 2016 and to termination of the extended finance program with the International Monetary Fund.

This was announced by Finance Minister of Ukraine Natalie Jaresko at the U.S.-Ukraine Business Council in Kyiv on Monday, Nov. 9, Censor.NET informs citing Interfax-Ukraine.

She explained that the IMF program stipulated for large agricultural manufacturers to shift to the general taxation system.

The minister specified that budget losses would make 12 billion UAH ($500 million) in 2016 caused by refusal to implement this certain agreement with the IMF.

Read more: Minister Jaresko: Tax reform would help avoid budget deficit of UAH 68 bln

Jaresko believes that the major alternative to this is draft tax reform developed by the Ministry of Finance.

According to her, the state budget losses will then shorten to 60 billion UAH and will require relevant decrease in the budget expenditures.

The minister acknowledged that the government had no solution to this issue of the expenses cut. According to her, it should not affect defense and social standards.

Answering reporters' questions, Jaresko said the date of the Fund's mission visit was not yet known.

Read more: Ukraine's GDP to grow by two percent next year, Finance Minister says

According to her, the IMF is expecting the Ukraine's government's final decision on the tax code package and the state budget for 2016.
 
 
 
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