The International Monetary Fund has again retreated from a tax condition it set for Ukraine’s $8.1 billion loan program, backing off after only one of four required draft tax laws cleared parliament. The fund approved the next $685.5 million tranche and called the first review completed – even as Russia launched mass attacks on Kyiv that disrupted the mission itself. Will this success last for long? After the new $8.1 billion IMF program began, the failed vote on tax amendments risked not just the broader donor financing that looks to the Fund as a credibility marker.JOIN US ON TELEGRAMFollow our coverage of the war on the @Kyivpost_official. The Fund had previously dropped a VAT measure on self-employed workers during the April IMF Spring Meetings. Of the four tax bills tied to the first review, only one – the extension of the military levy – has cleared parliament; the rest remain stalled, unsigned, or unsubmitted. Among the completed benchmarks, Ukraine appointed a new head of customs and improved nominations to state-owned banks’ supervisory boards, though it completed these with a slight delay. Ukraine extended the military levy – a tax needed to finance the army – for another three years. But President Volodymyr Zelensky has not signed the bill imposing taxes on income earned through digital platforms such as Uklon, Bolt, and OLX, a step required to make the legislation legal. The simplified VAT registration measure was never submitted to parliament. And legislation to introduce VAT on international parcels valued under €150 ($176) has been repeatedly left unreviewed by lawmakers despite being registered.
IMF Approves Ukraine Tranche Despite Stalled Tax Reforms
The IMF reviewed Ukraine amid Russian strikes on Kyiv while lawmakers stalled most required tax bills. Kyiv Post was told the Fund’s patience for this won’t last much longer.








