Key facts
- Ukraine's parliament failed to pass a law to tax foreign parcels.
- The bill was a condition for receiving funds from the IMF and EU.
- Prime Minister Sergii Koretskyi warned of significant financial risks and a defense funding deficit.
- The legislation received 194 votes, falling short of the 226 needed.
- The tax was projected to generate approximately 10 billion hryvnias annually.
Ukraine's parliament failed to approve a crucial law that would introduce taxes on foreign parcels, a measure necessary to secure financial aid from the International Monetary Fund (IMF) and the European Union. The vote, which fell short of the required 226 votes with only 194 in favor, occurred as an IMF monitoring mission is in the country reviewing its lending program. Prime Minister Sergii Koretskyi had urged lawmakers to pass the legislation, highlighting growing financial risks and a potential $27 billion deficit for defense needs. He stated that Ukraine could receive $30 billion from partners this year if commitments are met, but failure to pass such reforms could lead to significant financial challenges. The proposed tax, which would apply to parcels valued over €150, was projected to generate around 10 billion hryvnias ($227.53 million) annually. Some parliamentarians expressed concerns that the new taxes would increase the cost of living for citizens already struggling due to the ongoing war with Russia. Danylo Hetmantsev, head of the parliamentary committee for finances, taxes and customs, warned that the failure to pass the bill could result in a loss of approximately €4 billion from the EU and IMF.