Oleksiy Lyubchenko: Additional revenues are provided by combating “shadow” schemes and freeing up space for “white” legal business
The paradigm change in work of the State Tax Service continues to give its results. Fulfillment of the annual plan of budget revenues in November is evidence of effective and predictable work of the State Tax Service. This was stated today by Chairman of the STS Oleksiy Lyubchenko during meeting of the STS Board held by a videoconference.
“Jointly with taxpayers, we have made a significant progress in fulfilling revenue side of the budget. The annual plan has been fulfilled. So, we have a great opportunity to provide additional funds to the budget, which are so important for our country in the context of coronavirus crisis. At the same time, I emphasize that we managed to achieve such results without tax pressure on business. Additional revenues are provided by combating “shadow” schemes and freeing up space for “white” legal business” – specified Oleksiy Lyubchenko.
According to him, currently the STS established full communication with all public authorities involved in the formation and implementation of state tax policy. In addition, all measures taken by the STS are aimed at improving business environment in Ukraine, as well as improving social situation of population.
The state of providing revenue part of the budget for January – September 2020 was analyzed during the meeting. Growth of total revenues to budgets and state trust funds from payments administered by the STS during 9 months amounted to 111.0% (excluding payment of dividends by the state-owned entities 106.5%). This is ahead of the economic growth rate: real GDP (9 months) is 94.5%, consumer price index (9 months) – 102.4%, producer price index (9 months) – 95.2% and index of industrial production (9 months) – 93.0%.
Amount of tax revenues in May – September exceeded the set targets for the STS by 38.0 billion UAH. This allowed to reduce the gap from all revenues administered in the country (not only the State Tax Service) from 44.2 billion UAH (for January – April) to 10 billion UAH (for 9 months) and to 1.6 billion UAH as of the 1st of November 2020. This is a step towards financial stability.
Confirmation of the high-quality over-fulfillment of indicatives is achievement of over-fulfillment from all budget-generating payments, namely: 25.7 billion UAH of the VAT (balance) was paid over the indicative; personal income tax and levy was paid by 1.1 billion UAH more comparing to the indicative; excise tax was paid by 1.7 billion UAH more comparing to the indicative and income tax by 0.1 billion UAH more. But the main indicator is the actual increase in VAT revenues comparing to last year. Its revenues exceed the last year’s VAT rate by 42.5% in January – October 2020.
One of the main vectors of economic development for the next 10 years is digitalization of public services, including services provided by the STS. That is why Oleksiy Lyubchenko focused attention of his colleagues on the maximum meeting of taxpayers’ needs with electronic services.
“Digitization is a priority. We understand that in today’s quarantine conditions it is necessary to help Ukrainian business survive as much as possible. Ability to easily and conveniently report and pay taxes, quality tax service, efficient tax administration and readiness of the Tax service to provide support and assistance to taxpayers – these are the main vectors of our work. After all, despite the difficult times, domestic business continues to pay taxes honestly. And we need to provide appropriate feedback in the form of effective and balanced tax policy” – emphasized Oleksiy Lyubchenko.
In turn, representatives of the Ministry of Finance of Ukraine noted high efficiency of the STS, significant progress in implementing reforms and emphasized importance of continuing the well-established interdepartmental cooperation.
According to the First Deputy Minister of Finance Denys Uliutin, the state now has funds to finance social guarantees due to effective work of the STS in tax administration.
Chairman of the STS Oleksiy Lyubchenko during the meeting outlined the main tasks for heads of territorial bodies and structural subdivisions of the State Tax Service for the successful completion of current year with high results. The main focus was on high-quality tax administration, enhanced analytical work regarding tax violations and the counteraction against corruption.
