No tax on low-value imported parcels yet as Rada rejects two IMF-linked bills

Ukrainian President Volodymyr Zelenskyy rebuked the country's parliament, the Verkhovna Rada, after several crucial bills necessary for securing foreign aid were rejected on September 1. Zelenskyy emphasized that obtaining international financing during wartime is a matter of national survival, not a political battle between parties.

He stressed that funds from Ukraine's allies are essential to maintain both the civilian and military sectors of the economy. "These are not funds for the government or the opposition," Zelenskyy stated during his evening address. "In Ukraine, there are no teachers' salaries belonging to one party and teachers' salaries belonging to another parliamentary group. There are no soldiers' salaries belonging to one side or another of the parliamentary chamber."

Zelenskyy asserted that all decisions related to Ukraine's agreements with international partners must prioritize the country's interests, even if they are challenging or unpopular. He further stated that the government's and parliament's decisions will determine whether Ukraine receives approximately $30 billion in financing this year.

Additionally, he appealed to lawmakers to support legislation required to fulfill Ukraine's commitments to the European Union, arguing that opposing such measures while claiming support for European integration is dishonest and against the state's interests. "Talking a lot about Europe while not voting for Europe is dishonest; in addition to being dishonest, it is also against the interests of the state," Zelenskyy said. "Think about elections after the war. We need to vote on decisions involving $30 billion."

Earlier that day, the Verkhovna Rada failed to secure enough votes for bills imposing value-added tax on parcels up to EUR150 ($176). The passage of these bills is a prerequisite for Ukraine to receive the third tranche under its IMF program, totaling $700 million, and the second tranche of macro-financial assistance from the European Union, amounting to EUR3.7 billion ($4.3 billion) as part of the EU's EUR90 billion ($105 billion) loan program.