IMF rejects draft laws touted as priorities by Ukraine’s NSDC

The International Monetary Fund (IMF) has opposed draft laws No. 13414 and No. 13415, which propose compensating capital investments through tax incentives. This was announced by Danylo Hetmantsev, Chairman of the Verkhovna Rada Committee on Finance, Taxation and Customs Policy, during a committee meeting.

"I received a letter from the IMF stating that it does not support the adoption of this draft law and believes that its consideration requires prior consultations. We cannot ignore this institution, and we are unlikely to take steps that contradict its position. Therefore, such consultations will certainly take place in the near future," Hetmantsev said.

Despite the IMF’s stance, the Tax Committee reviewed the draft laws and recommended their adoption in the first reading.

"It's not about the details — it's about the concept. I would personally like to give this concept a chance to live. Because if we, say, refuse to consider it at all in the committee, there is a high likelihood that it will be buried before it’s even born," Hetmantsev added.

Draft laws No. 13414 and No. 13415 were introduced in June 2025 by a group of MPs led by Dmytro Kiselevsky. The National Security and Defense Council recognized them as priorities for business support.

Yulia Svyrydenko — then Minister of Economy and now Prime Minister — stated that compensating investments through tax incentives would become another tool of the Made in Ukraine policy.

Under the proposed legislation, companies investing in processing facilities would be able to recover part of their costs through taxes generated by the enterprise. Benefits would include exemptions from income tax, VAT, and import duties on new equipment and land.

The IMF opposes introducing new tax incentives. However, according to Hetmantsev, the authorities see the measure less as a tax break and more as an investment in domestic economic development.

Under the Memorandum of Economic and Financial Policies with the IMF, Ukraine has committed to refrain from expanding the number of taxpayers enjoying preferential tax regimes. The government has also pledged to review existing tax preferences, making them more targeted and efficient to minimize budget losses, ensure fairness, and improve the overall effectiveness of the tax system.