Ukraine adopts tax reforms sought by IMF

Lawmakers approved a series of tax reforms and tax increases, reducing the tax on employers, unifying the tax rate on personal income, and increasing excise taxes on tobacco, fuel, and alcohol, with the goal of balancing the budget, Radio Liberty reported the reforms were contentious. Many deputies argued that they unfairly increased prices for Ukrainians who are already struggling to make ends meet during a deep economic recession. The IMF had warned it was critical to approve a budget that complied with the Fund's 17.5 billion dollar bailout programme before it would provide Kyiv with a third, 1.7 billion dollar loan instalment. Parliament approved a budget with a deficit at 3.7 percent of economic output, the figure agreed with the IMF and one of its key demands. But Ukraine had promised to adopt permanent tax reforms, and the tax changes adopted December 24 were only temporary, with more action promised later.