The IMF sees tax increases in Ukraine as an incentive for continued international support.

Support from international partners, the restructuring of commercial debt, and an increase in taxes should be considered as a single package to eliminate Ukraine’s financing deficit. “Progress in the adoption of the tax package will affect the willingness of donors to continue supporting Ukraine,” said the head of the IMF mission in Ukraine, Gavin Gray. According to him, the readiness of international partners to continue support after the approval of tax changes will be higher, as this will testify to the state’s efforts to acquire greater self-sufficiency and independence from foreign aid, given the significant expenses in the medium term. Previously, the government approved and submitted to the Ukrainian Parliament a draft law that increases state tax revenues by ₴140B ($3.5B) by the end of the year. Deputy Minister of Finance Olga Zykova underlined that Ukraine would need $35B in external financing next year, but the IMF has determined Ukraine’s need at $22.7B. The IMF forecast will be adjusted after the fifth review of the EFF’s extended financing program in September.