STS supports initiatives that will strengthen combating smuggling and illegal tobacco market suggested by the Security Service of Ukraine
Press service of the State Tax Service of Ukraine , published 12 February 2020 at 14:11 Chapter: News
State Tax Service is ready to become an active participant in joint mechanisms of the Security Service of Ukraine and other law enforcement bodies aimed at combating smuggling and illegal market of excisable goods. This was stated by the Chairman of the STS Serhii Verlanov during the coordination meeting regarding the areas of concern of Ukrainian tobacco market which was held on the 11th of February 2020 by initiative of the SBU.
According to Head of the Security Service of Ukraine Ivan Bakanov, the volume of illegal tobacco market comprises about 7% of the total. Last year the budget did not receive 5 billion UAH due to unpaid taxes.
“Unrealized opportunities for citizens are behind these figures – specifically new roads, hospitals, kindergartens...After all, this is the average monthly pension for over 1 million 600 thousand of Ukrainian pensioners” – stated to Head of the Security Service of Ukraine.
Head of the SBU also drew attention regarding the need to implement effective control over the movement of excisable goods on the domestic market.
In turn, Chairman of the STS Serhii Verlanov supported the initiative suggested by the Head of the SBU and emphasized that the Tax Service is already strengthening the analytical component in control over the production and turnover of excisable products.
“Existence of a shadow market of excisable products creates a number of dangers. On the one hand, the state does not receive significant funds from the excise tax and VAT, and on the other hand, illegal business creates obstacles to the development of honest entrepreneurship and distorts competition inside this market. Furthermore, smuggled and counterfeit products threaten the health of consumers through inadequate quality control and compliance with all technological requirements for its production” – stated Chairman of the STS Serhii Verlanov.
Minister of Internal Affairs Arsen Avakov, Minister of Finance Oksana Markarova, Deputy Minister of Economy, Trade and Agriculture Svitlana Panoiotidi, Chairman of the State Tax Service Serhii Verlanov, Deputy Chairman of the State Customs Service Robert Zeldi, Chairman of the Verkhovna Rada of Ukraine Committee on Finance, Tax and Customs Policy of Danylo Hetmantsev, General Director of the Association “Ukrtiutiun” and representatives of the business environment also attended the coordination meeting.
Participants of the meeting particularly emphasized the need to improve current legislation in the context of strengthening the control in the sphere of retail and wholesale trade of tobacco products. This will prevent further tax evasion and illegal turnover of excisable goods.