The head of the Verkhovna Rada Committee on Finance, Tax and Customs Policy Daniil Hetmantsev sees a significant potential of additional revenues to the state budget of Ukraine in case of a significant strengthening of the fight against the shadow market of excisable goods, especially tobacco products.
“Of all the excisable industries, we see the greatest potential in the detenization of the tobacco industry. This is about 15-17 billion UAH,” he said in an interview on Radio NV.
According to him, there is also great potential in the fuel market.
“As for vodka, the potential for detenalization is less, because the total amount of excise tax from alcoholic beverages is about 10 times lower than that of tobacco. Although there is certainly a certain reserve of detenalization for alcoholic beverages,” said Getmantsev.
The head of the Committee pointed out that the shadowing and tax evasion in the tobacco market takes place not at the level of its leaders but at the level of smaller companies and illegal manufacturers.
He reminded that the tobacco industry consists primarily of four major international manufacturers that are not suspected of tax evasion, because if it happens, the risks of such evasion for them will be incommensurate with the benefits.
“And we see, actually, by their tax behavior, that it is credible. These are market leaders, these are white companies, these are companies that pay taxes in full,” stated Getmantsev.
At the same time, according to him, some smaller Ukrainian tobacco companies are suspicious.
“There are some legal manufacturers that raise doubts about their compliance with taxation rules. In particular, there is a tobacco factory in the western Ukraine, where recently the Bureau of Economic Security (BES) conducted searches and found excisable goods without excise stamps for 80 million UAH”, – said the head of the Committee.
He added that the market also has some small legal production, but there is still a large part of the market – illegal producers, even without a license. “For example, Odessa customs recently detained and confiscated a cigarette production line, which they tried to bring into Ukraine illegally under the guise of soap production line,” – gave an example Getmantsev.
At the same time, the head of the specialized parliamentary committee stressed the inadmissibility of tax evasion during the war.
Changes in revenue of consolidated budget in 2014-2022 (%)
Source: Open4Business.com.ua and experts.news
State budget expenditures on Ukraine’s defense and national security in 2022 amounted to 32.5% of GDP, UAH 1.537 billion were allocated, Secretary of the National Security and Defense Council (NSDC) Oleksiy Danilov said.
“A few numbers. UAG 1.537 billion in 2022 were allocated to Ukraine’s national security and defense, which accounted for 32.5% of GDP. The needs of the frontline are of primary importance for President Zelensky and a definite priority!” Danilov said on Twitter.
Structure of approved ukrainian state budget expenditures for 2023
Structure of approved state budget income for 2023
CMU
Ukraine has received $27 billion in external financing since the start of Russia’s full-scale military invasion, this amount is expected to grow to $30 billion by the end of the year, Finance Minister Serhiy Marchenko said on the air of a national telethon.
“The need for 10 months of the war is $50 billion. Partly our partners helped us, partly we financed through domestic borrowing, including the monetization of financing by the National Bank of Ukraine,” he said.
According to the Ministry of Finance, as of December 7, total external financing amounted to $28.26 billion, of which $27.26 billion was used to finance the budget deficit, and another $1 billion – for reconstruction. Another $11.66 billion, or 370 billion UAH was provided by the National Bank through the purchase of government bonds.
Marchenko pointed out that next year’s state budget financing needs are estimated at $38 billion. “It is less than this year, but everything depends on how things develop on the military front… Own revenues are not enough even to meet the basic needs of security and defense,” the minister said.
According to him, besides EUR18 billion from the EU, Ukraine expects from the USA $9,9 billion for 9 months, as well as bilateral support from other G7 members, including Great Britain, Canada, Japan, with whom negotiations are already under way, and the World Bank and the IMF.
In this regard, Marchenko stressed the importance of creating a “financial Ramstein” – not only as a political platform, but also as a platform to address working issues – rhythm, predictability and possible funding delays.
“I can not say about the exact dates, but negotiations are underway, quite actively, at the working level meetings (take place) every two weeks,” he described the current situation on the creation of such a format.
Commenting on Hungary’s blocking of the decision to allocate EUR18 billion to Ukraine next year, Marchenko called the news “unpleasant, but no more.”
“I think that the EU will find ways to solve this issue. Already received signals that there are several steps, how it can be done, so we have no special worries about it. I think everything should be in order,” the head of the Ministry of Finance of Ukraine said.
As reported, the National Bank of Ukraine on Thursday projected a total external financing of the country this year at $ 31 billion.
