You're reading: Income ministry clears up 80-90 percent of illegal vodka production market, cigarette smuggling

The tax agencies have been able to clear up 80-90% of the illegal vodka production market and cigarette smuggling business, Deputy Income and Tax Minister of Ukraine Volodymyr Khomenko has said.

“The shadow market is around 80-90% cleaned up. I mean illegal vodka
production and smuggling of cigarettes,” he said at a press conference
on April 17.

Khomenko said that products worth almost Hr 67 million were removed
from illegal turnover. The final settling of the problem is scheduled
for the period until May 15.

First Deputy Income and Tax Minister Ihor Bilous said that the
fulfillment of tasks on the replenishment of the national budget is
hindered by sabotage of certain officials in the regions.

He said that occupation, separatism and political instability affect
the business activity and bring to the narrowing of domestic demand,
which reduces the potential of budget replenishment.

“We have our own war,” he said.

Bilous said that the stoppage of corrupt schemes, which allowed
getting money using budget funds, stabilized the payment of revenues to
the budget.

“We’re reached the fulfillment of the budget for March over March by 100.2%, despite the difficult situation,” he said.

According to the ministry, in the first two weeks of April Hr 750
million or 20% more was sent to the budget compared to the same period
in 2013.

“Hr 50-70 billion in taxes was not paid to the national budget last
year. We should do all we can not to lose money this year, as there is
no other reserve in the country,” Bilous said.

He said that the total volume of business checks was reduced and the
criteria for assessing the efficiency of checks were canceled, which
will cut requisitions from business.

Deputy Income and Tax Minister Vitaliy Naumenko said that imports of
goods to the country over the period since early 2014 fell by 8.7%
year-over-year.

He said that the liquidation of schemes for avoiding payment of taxes
realized by Serhiy Kurchenko has resulted in growth in imports of
petrol in March 2014 by 83% compared to Feb. 2014, and diesel fuel –
by 61%.