Finance Minister Sergiy Marchenko said that there is a high risk that the law on taxation of imported parcels up to EUR 150, which is a condition for EU and IMF financing, will not be passed. The law is supposed to support domestic business and improve the balance of payments, but the lack of public support puts it at risk.
Basic context
Minister of Finance Sergey Marchenko stressed the need to adopt a law on taxation of imported parcels worth up to EUR150, which is a condition for Ukraine's financing from the European Union and the International Monetary Fund. During a roundtable discussion in Kyiv, he said that “there is a big risk today that this draft law will not be adopted” and called it a lost opportunity.
Marchenko added that the goal of the roundtable was to mobilise additional energy and resources to change public opinion. According to him, the draft law is aimed at supporting Ukrainian businesses and people living in Ukraine, as well as improving the country's balance of payments.
Positions of key players and economic implications
Chairman of the relevant parliamentary committee Daniil Getmantsev critically noted that Ukrainian business is not actively supporting this draft law. He also informed about the expected vote in the Verkhovna Rada on draft law on taxation digital platforms on 26-27 May, predicting a high probability of its support.
A representative of the European Business Association called on MPs to show political will and reminded them that previously laws had been passed even despite business opposition.
According to the EBA, the value of untaxed import parcels is growing by 50% annually and currently stands at UAH 93 billion a year, accounting for 56% of all international shipments. Marchenko noted that the current account deficit of the balance of payments has increased from $2 billion a year before the war to more than $50 billion.
Economic policy and public discourse
The Minister expressed the view that the draft law on taxation of imported parcels is part of the policy of supporting domestic production and the development of business and technology in Ukraine. He stressed that a different model, where everything is accessible and open, but the benefits go to non-Ukrainians, leads to negative social perceptions.
Marchenko also emphasised that resistance to the law is often based on myths, such as that poor Ukrainians will pay 20% more for imported Chinese goods. He called this a manifestation of deep depressive populism that threatens tax revenues and funding for the armed forces.
The minister reminded that the European Union has been imposing VAT on all imported parcels since 2021, and this has brought in EUR 88 billion in three years.
