Lawmakers Kill Parcel Tax Reform, Block Audit Chamber Vote Hours After PM Warns of $27B Defense Gap
Ukraine's parliament has rejected eight bills that would have taxed low-value imported parcels, and failed to approve a vote on selecting six new accounting chamber members – both conditions of EU and IMF financing – hours after Prime Minister Serhii Koretskyi urged lawmakers to clear bills tied to $30 billion in expected 2026 support.
Ukraine's parliament, the Verkhovna Rada, turned back eight bills on Tuesday, Sept. 1, that would have ended a VAT exemption on low-value imported parcels and blocked a vote on selecting six new Accounting Chamber members. These commitments were tied to Ukraine's EU and IMF financing. Prime Minister Serhii Koretskyi warned lawmakers that Ukraine expects $30 billion from partners this year, contingent on delivering promised reforms.
Koretskyi highlighted the rising costs of the war and the Defense Ministry's budget shortfall as the reasons for the financial crisis. Without addressing these issues, the state could face significant financial risk, affecting defense forces, the social sphere, and wages. The government still needed to adopt 44 decisions by Nov.
1. Of 26 pending bills, only 12 were on the agenda. Two crucial bills, No. 15460 and No. 15112-d, failed to pass. No. 15460 required procedural mechanics for ending the VAT exemption on parcels under €150 ($174), while No. 15112-d sought to end the VAT exemption itself. The Finance Ministry estimated the reform would generate approximately Hr.
10 billion ($224.6 million) annually. The bills were a condition for Ukraine's third IMF tranche and the EU's second tranche of the Ukraine Support Loan. This was the second failure of a reform bill in parliament this year, with the previous one falling short on May 26.
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