IMF urges Ukraine to increase tax collection as foreign support decreases


(MENAFN) The head of the International Monetary Fund's (IMF) mission in Ukraine has cautioned that foreign support will decrease, and Ukraine must seek alternative means of financing.

In an interview with a business outlet, Gavin Gray proposed that Kiev should prioritize increasing its tax collection.

“Everyone understands that over time international support for Ukraine will decrease, so the country needs to develop internal resources for self-financing. The authorities should focus on strengthening the capacity to collect revenues – both tax and customs,” Gray informed the outlet on Monday.

He further mentioned that Ukraine will require additional tax revenue to cover the augmented social spending once the conflict within the country concludes.

In March, the IMF endorsed a four-year program to provide Kiev with USD15.6 billion in loans, and two installments of more than USD3.5 billion have already been disbursed.

According to the IMF representative, Kiev must undertake a series of tax reforms to meet the fund's stipulated aid conditions, including conducting business tax audits and amending legislation related to the prevention of money laundering and combating terrorist financing.

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