**Ukraine’s Reforms Tracker: Week of April 28 – May 4, 2025**
The Ukrainian parliament has made several crucial steps in the last week, particularly in meeting commitments to international financial programs. However, some key reforms have hit a snag.
**Taxing Digital Platforms**
One significant development is the registration of draft law #13232 by Ukraine’s Cabinet of Ministers. This legislation aims to tax digital platforms, as required by an International Monetary Fund (IMF) structural benchmark. The proposed rules designate platform operators as tax agents, who would automatically withhold taxes from individuals earning income through goods or services sold on their platforms.
A 5% personal income tax and an additional 5% military levy would apply to relevant transactions. However, experts warn that due to legal ambiguities, the effective tax rate could rise to 23%, rather than the intended 10%. The draft law also includes provisions for lifting banking secrecy and granting tax authorities broader access to financial information.
**EU Assistance Stalls**
On the other hand, Ukraine’s parliament has failed once again to advance a crucial judicial reform bill tied to EU assistance. For the third time, draft law #13114 was not included on the agenda, despite being a requirement under the EU’s Ukraine Facility program. This program is linked to the disbursement of 300-400 million euros in macro-financial assistance.
The delay mirrors similar setbacks with the ARMA reform bill, which has yet to be added to the parliamentary agenda despite repeated attempts. The failure to advance these reforms may have implications for future EU support.
**Emergency Session on US-Ukraine Mineral Deal**
In a separate development, the Verkhovna Rada will hold an emergency session on May 8 to vote on the ratification of the Critical Minerals Agreement between Ukraine and the United States. The U.S. and Ukraine signed this agreement on April 30, paving the way for further American support through a joint investment fund that will contribute to Ukraine’s reconstruction.
**International Expert Panel**
Ukraine has finalized the selection of three international experts who will join a six-member Advisory Expert Group tasked with overseeing the selection of members to the Accounting Chamber, Ukraine’s state audit body. The appointed experts come from Latvia, France, and the United Kingdom, bringing extensive experience in auditing and financial oversight.
**Next Steps**
The Cabinet of Ministers is expected to formally submit the list of international and Ukrainian experts to parliament, followed by a rating vote to select Ukrainian members. This process is expected to be completed within the next plenary week.
In conclusion, while Ukraine has made progress in meeting commitments to international financial programs, some key reforms have hit a snag. It remains to be seen how these developments will impact Ukraine’s economic and political landscape.
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Yaroslav Zhelezniak is the first deputy head of Ukraine’s Parliamentary Committee on Finance, Tax, and Customs Policy. He is also the co-chair of the Ukrainian Chapter of the Parliamentary Network of the World Bank and International Monetary Fund.
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