According to a Ukrainian government press release issued on 28 October 2013, delegates from the International Monetary Fund (IMF) have recommended that Ukraine postpone its plan to implement lower value-added tax rates and income tax rates in 2014. Ukrainian officials met with the head of the IMF mission to Ukraine Nikolay Gueorguiev and the IMF’s Resident Representative in Ukraine Jerome Vacher, the press release said. During the meeting, the IMF officials said it was necessary to delay plans Ukraine has for reducing the VAT rate from 20 percent to 17 percent and the income tax rate from 19 percent to 16 percent. However, the statement did not specify the reasons for the IMF recommendation.
The planned reduction is scheduled for January 1, 2014. IMF and Ukrainian officials also discussed the situation involving VAT refunds, the use of treasury bills and the possible increase of a number of excise duties during the meeting.
