Business news from Ukraine

PrivatBank will pay 24.2 bln UAH in dividends to state budget

State-owned PrivatBank, the largest in the market, will pay dividends to the state budget in 2022 in the amount of 24 billion 158.37 million UAH, or 80% of net profit.
According to the report of the Ministry of Finance, the distribution of profits was approved by the Cabinet of Ministers at the meeting on April 28.
Net profit of PrivatBank for 2022 was UAH 30.198 billion, a decrease of 13.7% compared with 2021, in which the bank paid to the state budget UAH 28 billion in dividends, which also amounted to 80% of net profit.

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Changes in consolidated budget expenditures in 2021-2022 (%)

Changes in consolidated budget expenditures in 2021-2022 (%)

Source: Open4Business.com.ua and experts.news

Changes in revenue of consolidated budget in 2014-2022 (%)

Changes in revenue of consolidated budget in 2014-2022 (%)

Source: Open4Business.com.ua and experts.news

Detenization of tobacco market will add up to UAH 17 bln to budget – Daniil Getmantsev

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.

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Changes in revenue of consolidated budget in 2014-2022 (%)

Changes in revenue of consolidated budget in 2014-2022 (%)

Source: Open4Business.com.ua and experts.news

Budget spending on Ukraine’s defense in 2022 amounts to 32.5% of GDP

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.

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