Ukraine plans to restore pre-war taxation to implement their IMF program.

In the first reading, the parliament supported changes to the Tax Code of Ukraine and other laws regarding the specifics of taxation during the martial law period. Their goal is to restore the taxation system to its pre-war state.

The Ministry of Finance predicts that revenues to the state and local budgets will increase by UAH 10B in 2023. From July 1, the document proposes to replace the tax for entrepreneurs and legal entities in the single taxation of group III with the application of a single tax rate of 2 % of income. Also envisioned is the elimination of the possibility for FOP groups I and II not paying tax, the resumption of document checks, and fines for tax legislation violations for all taxpayers.

The ministry emphasized that the draft law does not provide for tax increases and does not introduce new tax rates. This bill is one of the 19 structural beacons of the $15.6B EFF four-year expanded financing program for Ukraine.