The IMF has called on Ukraine to make its tax system more growth-friendly, strengthen tax administration and reduce the size of the informal economy as part of wider reforms aimed at boosting economic growth, increasing domestic revenues and supporting fiscal resilience amid ongoing war-related pressures.
On 12 June 2026 the IMF issued a report following discussions with the Ukrainian authorities on the first review of the four-year extended fund facility (EFF) arrangement and the 2026 Article IV consultation. The Article IV discussions focused on policies to promote economic growth within a dynamic market-based economy. The IMF recommended reforms to make the tax system more growth-friendly and policies to reduce the size of the informal sector.
Ukraine’s GDP growth is projected to slow to around 1.0% to 1.6% in 2026 amid the ongoing impact of Russia’s war in Ukraine and spillovers from the war in the Middle East. The IMF considers that the government must be ready to mobilise additional domestic revenues, identify potential offsetting savings, and be prepared for additional spending on defence and reconstruction. The government should make efforts to improve tax administration and tax policy with the aim of mobilising revenues.
Reducing the size of the informal economy would be the most effective way to mobilise domestic revenues and promote growth. This would create a level playing field, improve the business environment and allow Ukraine to compete in the EU single market. Action is required to implement relevant legislative changes and administrative reforms.
Ukraine is committed to introducing transfer pricing measures to eliminate the ability of companies to use unfair tax arbitrage to avoid paying taxes in Ukraine. Reforms are also required to prevent abuse of the simplified tax regime, including rules to prevent business splitting and switching between tax regimes. The government has agreed on a package of measures to streamline tax administration and reduce tax compliance costs while strengthening risk-based enforcement. Tax evasion will be combated by changes at the Economic Security Bureau and the State Customs Service.
The report notes that reforms are also required to improve governance and strengthen anti-corruption institutions. Recent corruption cases have highlighted the importance of moving quickly with reforms to the governance of state-owned enterprises and banks. Efforts should continue to improve transparency and accountability, and address identified governance weaknesses. Well-functioning supervisory boards and effective fiscal risk management are necessary to preserve the value of national assets and contain fiscal risks.
