Direct tax losses from the blockade of trade with occupied areas in Donbas and the loss of control over Ukrainian-owned enterprises there totaled about Hr 1.2 billion in January-May 2017, Head of the Large Taxpayers Office Yevhen Bambizov has said.
The losses in May alone exceeded Hr 630 million, he said.
Direct losses from the seizure of the enterprises account for 70% of the total amount, which also includes losses sustained by consumers of their produce in Ukrainian-controlled territory, at ports and freight transportation firms.
Out of 105 large Donbas taxpayers serviced by the Office, 35 have been lost.
Losses from short receipts of corporate profit tax and value added tax were the highest, they amounted to about Hr 600 million and Hr 370 million, respectively. The Pension Fund and other social funds lost over Hr 107 million in single social security tax. A decline in payments of individual income tax is estimated at Hr 31 million, those of war tax at Hr 10 million, and net profit at Hr 83 million.
The illegal seizure of DTEK’s power assets: Tehrempostavka LLC, DTEK Skhidenergo LLC, DTEK Power Grid LLC and coal assets: DTEK Sverdlovanthracite LLC, DTEK Rovenkyanthracite LLC, DTEK Mine Komsomolets Donbasa inflicted most of the losses of the budgets of all levels.
Considerable direct losses were also caused by Donbasenergo and Yenakiyeve coking and chemical plant, and indirect losses were reported by ArcelorMittal Kryvyi Rih, Dniprovsky steel mill, Mariupol and Berdiansky seaports, the port of Oktiabrsk (renamed Olivia stevedoring company), and Lemtrans.
