The Verkhovna Rada of Ukraine supported at first reading government bill No. 8401 on the abolition of the 2% single tax and other benefits for entrepreneurs from July 1, 2023, which is one of the conditions for cooperation with the IMF and the delay of which caused concern.

According to information on the parliament's website, some 227 MPs voted for the adoption of this bill, with the required minimum of 226 votes.

"The adoption of the bill will contribute to an increase in revenues to the national and local budgets in 2023 in the amount of about UAH 10 billion," Finance Minister Serhiy Marchenko said.

According to the published information, the bill proposes to abolish the possibility for sole proprietors and legal entities to be single tax payers of the third group using a single tax rate of 2% of the amount of income and to resume the payment of single tax for the first and seconds groups of sole proprietors.

The bill stipulates the resumption of documentary checks, however, during martial law, they will be carried out if there is safe access to the territories, premises and other property that are used for economic activities and/or are subject to taxation, as well as documents and other information related to the calculation and payment of taxes and fees.

The ministry said it is proposed to resume the application of penalties for violation of tax laws, the correctness of accrual, calculation and payment of a single contribution for compulsory state social insurance and the procedure for using cash registers and to resume the deadlines determined by tax laws.

Marchenko said the bill does not stipulate an increase in taxes and does not introduce new tax rates, and the norms are aimed primarily at returning tax legislation to its pre-war state.

The law is expected to come into force on July 1, 2023, according to the arrangements with the IMF.