Lifting moratorium on tax audits and PPO liability: new memorandum with IMF published

22 December 2022, 17:54 | Economy
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The government of Ukraine, with technical assistance from the IMF, will work to develop an integrated roadmap for tax policy and tax administration measures to restore the pre-war state of tax administration and policy as soon as possible, according to the Memorandum on Economic and Financial Policy for Ukraine of the Board of Directors of the International Monetary Fund, published by the government of Ukraine.

The program provides for an increase in tax revenues and a revival of the domestic borrowing market, as well as a containment of monetary financing and an improvement in the transparency of public institutions.

So, in the near future, the government will submit three bills to the Verkhovna Rada, which should come into force on July 1. This is about:.

lifting the moratorium on tax audits,.

abolition of the simplified system with a single tax rate of 2% and the restoration of the pre-war regime for these taxpayers.

ensuring the effective and full use of the registrars of settlement transactions in retail establishments, including the renewal of liability for violation of these requirements.

According to government calculations, the approximate increase in revenue in 2023 from the removal of changes to the simplified tax regime is estimated at about 0.13% of GDP in 2023, with an estimated budget deficit of 21.6% of GDP.



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The government, in turn, noted that the implementation of the provisions of the Memorandum will bring the country closer to the launch of a new full-fledged cooperation program with the IMF in 2023.

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Recall that on November 23, IMF experts and representatives of the Ministry of Finance of Ukraine, the National Bank of Ukraine and other authorities reached an agreement at the working level on economic policy within the framework of the Monitoring Program for Ukraine.




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