The International Monetary Fund (IMF) has agreed to extend the deadline for adopting the law on parcel taxation until the end of July. This decision became a key factor in removing the risks for Ukraine to receive the second loan tranche of $686 million. This was reported by RBC-Ukraine, citing sources familiar with the results of the IMF mission's work in Kyiv.
Critical Deadline Extension
Initially, the condition for continuing financing was the adoption of the law on parcel taxation by the end of March. Last week, sources told the publication that the IMF categorically refused to make concessions, and without fulfilling this requirement, the allocation of funds would have been impossible. However, at the final stage of work, the Fund's mission changed its position.
Experts from the creditor were convinced that additional time is needed to gather the necessary number of votes in the Verkhovna Rada. As RBC-Ukraine's interlocutors noted, the negotiations were not easy. The IMF made it clear that concessions on this issue were made for the last time, given the political and economic realities and the lack of a quick prospect for adopting the document due to weak support among deputies.
Difficulties with Consensus in the Rada
Currently, the government and the relevant tax committee intend to conduct active consultations with deputies to build support for the draft law. At the end of May, Finance Minister Serhiy Marchenko and the head of the tax committee Danylo Hetmantsev already stated the need to intensify work to reduce the negative perception of parcel taxation both in society and among parliamentarians. However, according to sources, there is currently no consensus in the Rada.
The next review of the IMF program is scheduled for the end of August. The law must be adopted by this date. In fact, deputies have about a month and a half to work, as legislative activity will be suspended in the second half of July until September.
Bank Profit Tax and Digital Platforms
As part of the mission's work, the issue of increasing the bank profit tax from 25% to 50% was also discussed. This measure, which acted as a temporary one in 2023–2024, is also applied in the current year, significantly increasing the budget revenue. Just in the first quarter of 2026, the banking sector is expected to transfer about 27 billion hryvnias to the treasury.
The initiative to increase the tax comes from people's deputies, although the NBU and commercial banks oppose it. The IMF generally does not support such steps, considering them risky for economic lending. Nevertheless, the Fund showed loyalty: if the Rada decides to increase the rate, the Fund will not object, given the need to increase internal sources of replenishing the treasury.
In addition, the adoption of a law on introducing a tax on income from digital platforms (draft law No. 15111-d) is expected. The document has been discussed and refined taking into account the remarks of the business and alternative proposals of the deputies. The adoption of the law is expected next week.
Next Steps on Financing
As a result of the mission's work, the preparation of a so-called staff-level agreement is expected. This document records preliminary agreements between the Ukrainian side and the Fund's mission, as well as contains an assessment of the progress achieved in fulfilling the program conditions.
After the publication of the agreement, the issue of further financing will be submitted to the IMF Executive Board, which makes the final decision on the allocation of the next loan tranche. In the course of preparing the new program, the IMF has repeatedly demonstrated a certain flexibility, softening conditions in the tax block.