Leaders of major business associations held a regular meeting with the IMF’s Resident Representative in Ukraine, Ms. Priscilla Tofano, and IMF experts
On March 31, 2026, a regular meeting was held between the International Monetary Fund team in Ukraine and the leaders of leading business associations, members of the Ukrainian Business Council.
During the meeting, representatives of the business community shared the business community’s perspective on the Cabinet of Ministers’ initiatives in the tax sphere and government support programs, as well as their views on the changes needed to revive the economy and improve the business climate in the country, taking into account geopolitical changes in the world.
Representatives of the business community thanked the IMF for key provisions of the Memorandum on Economic and Financial Policies, particularly regarding the appointment of the head of the Customs Service, the need to find a solution for the tax regime for international parcels, and the development of a mechanism for taxing income declared through digital platforms.
In the context of the Government’s latest legislative initiatives, representatives of the business community gave a positive assessment of the analytical approach taken by the State Regulatory Service, which at the beginning of the year analyzed the Ministry of Finance’s draft law, conducted an alternative assessment of the calculations, and issued a well-reasoned decision to refuse approval of a draft law that the business community deemed substandard . In the opinion of business representatives, strengthening the independence of the State Regulatory Service will serve as an effective safeguard against inadequately prepared draft laws—based on poor-quality impact assessments—reaching the floor of Parliament.
Special attention was given to the introduction of VAT for a larger number of taxpayers, particularly sole proprietors. This is a highly contentious issue, and heated debates are currently underway regarding the effectiveness and timeliness of its implementation.
Participants in the discussion shared their views on the appropriateness of the support programs recently launched by the government and assessed their feasibility and effectiveness. Spending state budget funds during a period of acute shortage without assessing the appropriateness of such expenditures, and without specifically identifying the categories of recipients who truly need support—all while simultaneously pursuing tax-hiking initiatives—creates a political and economic imbalance. Such actions create an impression among the business community and civil society that the state’s economic policy is unpredictable and irrational. The business community may accept difficult fiscal decisions, but only if the state uses existing resources effectively and transparently. In a period of limited resources, the priority must be the rational, transparent, and targeted use of funds. Without this, any initiatives to raise taxes undermine business confidence, worsen the investment climate, and fail to create the conditions for sustainable economic development.
While discussing mechanisms to help strengthen the regional economy, the participants highlighted the importance of implementing a national clustering policy at the regional level and identified the need to expand and prioritize cluster support tools, ensure government leadership, and strengthen all institutions supporting clusters.
Following the discussion, representatives of the IMF and business associations agreed on further systematic cooperation and regular meetings to exchange views on issues of priority for Ukraine’s economy.
