The government is considering raising taxes as part of the IMF program.

The Cabinet of Ministers is considering a plan to increase budget revenues by 0.5% of GDP, which Ukraine must present within the IMF program. To that end, the government plans to introduce additional taxation in the form of a 0.1% military levy on the profit of enterprises and income of private enterprises, 1.5% on the value of precious metals, 30% on the value of jewelry, and 10% on the value of movable property. The possibility of additional taxation on real estate transactions is also being considered.

However, even introducing these taxes cannot cover all of the budget’s needs because their total fiscal effect will amount to only about ₴40B ($1.1B), while the government needs at least ₴400B.

To collect the required amount, the question of increasing tax rates, namely VAT and the military levy (on personal income), is being considered. To cover the more than ₴400B need, increasing the VAT and the military levy rates by approximately 6-7% will be necessary.