Ukraine’s Tax-Amnesty Plan Clears First Hurdle in Parliament

Ukraine’s parliament gave preliminary approval to a tax amnesty aimed at combating the gray economy and boosting government revenue in the wake of the pandemic.

The bill would allow residents to pay a 5% special levy on undeclared assets inside the country and 9% for foreign assets, starting in July, 2021 and ending a year later. Lawmakers backed it Tuesday in a first reading. A second is still needed before it could be signed into law.

But it wasn’t clear whether the International Monetary Fund supports the move. The lender has expressed caution with regard to the idea in the past and is already withholding the next tranche of a $5 billion loan.

“Adopting the law will create a catalyst to bring income hidden from taxation out of the shadows,” President Volodymyr Zelenskiy’s office, which initiated the bill, said in a statement.

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