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Ukraine launches crackdown on shadow economy, smuggling and tax evasion

Ukraine launches crackdown on shadow economy, smuggling and tax evasion
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Ukrainian Prime Minister Serhiy Koretskyi has announced that, together with government officials, members of parliament, and the leadership of the Economic Security Bureau (ESB), National Police, tax and customs services, priority measures have been identified to eliminate or reduce the shadow economy.

"Among the priority measures are combating the illegal production and circulation of tobacco products, taxation of electronic cigarettes and e-liquids, tackling smuggling, eliminating tax evasion schemes, and addressing fraud in the gambling industry, among other issues," Koretskyi wrote on Telegram.

According to the Prime Minister, particular attention was paid to strengthening controls over the import, registration and intended use of humanitarian aid entering Ukraine.

"There are reasonable grounds to suspect that the term 'humanitarian aid' is being used to facilitate criminal schemes. The Ministry of Social Policy, together with the relevant government agencies, will prepare appropriate amendments to regulations," the Prime Minister added.

 

The meeting also addressed the introduction of electronic contracts and invoices to facilitate the processing of agreements and bills, as well as the automatic exchange of data. The necessary legislative amendments will be prepared for this purpose.

"Specific tasks, deadlines and responsible officials have been identified for each area. The objective is to prevent and eliminate illegal schemes, secure additional revenues for the state budget, and ensure a level playing field for businesses that operate legally and pay taxes. We will report on progress every month," Koretskyi wrote.

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