The International Monetary Fund (IMF) has expressed no concerns regarding Ukraine’s latest social initiatives, which include a national cashback program, a one-time payment of 1,500 hryvnias, and the purchase of generators.
An IMF representative stated that these initiatives do not affect the state budget indicators, confirming discussions held on March 18 regarding the matter. The Ukrainian government assured that additional expenditures would be covered by funds allocated for government programs and the reserve fund.
On March 18, a team from the IMF, led by mission chief Gavin Gray, began its visit to Kyiv. The delegation is engaged in talks with Ukrainian officials concerning the Extended Fund Facility (EFF) program, which amounts to 8.1 billion euros.
Ukraine received its first tranche of 1.5 billion dollars under the new EFF program on March 3, with the funds already deposited for priority budget expenditures.
As part of the EFF program, Ukrainian lawmakers are expected to pass a package of tax measures by the end of March. This includes mandatory registration for VAT payers among simplified tax system users with annual incomes exceeding 4 million hryvnias, effective January 1, 2027. The initial threshold proposed by the Ministry of Finance was revised following significant criticism from the business community.
Additionally, lawmakers rejected bill No. 14025 concerning the taxation of income generated through electronic platforms, which was also part of the agreement with the IMF, as it lacked sufficient support.
In April, approximately 13 million Ukrainians will receive a one-time payment of 1,500 hryvnias from the government. Furthermore, the government has expanded the national cashback program to include fuel expense reimbursements.
According to reports, starting this Friday, drivers in Ukraine will be able to receive cashback on fuel purchases. From March 20, a portion of the funds spent on fuel will be credited back to a special user card, provided that the refueling occurs at gas stations officially participating in the program.
The IMF has confirmed its support for Ukraine's recent social initiatives, which include a cashback program and direct payments to citizens. Ongoing discussions focus on the Extended Fund Facility program, which aims to bolster Ukraine's economy amidst ongoing challenges.