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Appointing Head of SAPO, adopting bill No. 5600, and much more: Details of memorandum with IMF

Getmantsev shares the details about the terms and conditions of cooperation with the IMF. Photo: Reuters

Getmantsev shares the details about the terms and conditions of cooperation with the IMF. Photo: Reuters

The memorandum with the International Monetary Fund (IMF) obliges Ukraine to appoint the Head of the Specialized Anti-Corruption Prosecutor's Office (SAPO) by December and protect the population during the period of rising world gas prices. This was stated by the Chairman of the parliamentary Committee on Finance, Tax and Customs policy Danylo Hetmantsev in a commentary to the agency Interfax-Ukraine.

First of all, Hetmantsev notes that the memorandum not only does not contain requirements to increase gas prices, but also obliges the Government to continue protecting vulnerable populations through the subsidies during the period of rising world gas prices.

Hetmantsev also notes that the memorandum provides for adopting of tax bill No. 5600, improving administration of excise taxes and personal income tax (PIT) on real estate sales and rent. According to him, the memorandum with the Fund contains a rule on "improving tax administration" and minimizing opportunities for abuse, in particular, improving the administration of excise taxes and PIT on the sale of real estate.

As the People's Deputy notes, Ukraine, according to the memorandum, intends to "close tax loopholes related to the real estate transactions and improve the assessment of the taxable base for corporate income tax and rental payments."

The memorandum also provides for Ukraine's intention to reduce the state budget deficit to 3.5% of GDP (the state budget for 2021 provides for a 5.5% deficit), but this has already been included in the draft budget for 2022.

In addition, Ukraine is obliged to continue implementing the pension reform and release the results of an audit by the COVID-19 Foundation by the end of this year. The launch of the Bureau of Economic Security and the elimination of the State Fiscal Service by the end of December this year are also among the intentions of Ukraine.

Context. The International Monetary Fund approved providing a tranche of a loan to Ukraine in the amount of $700 million. In addition, the IMF Executive Board agreed to extend the Stand-by Agreement until early July 2022.

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