Ensuring stable and sustainable revenues for the wartime State Budget remains a top priority for Ukraine. Tackling the shadow economy and ensuring a level playing field are essential to support defense needs, recovery, and continued cooperation with international partners.
AmCham Ukraine supports initiatives to ensure a level playing field, reduce the shadow economy, and align Ukrainian legislation with the EU rules. We call on all Members of Parliament to support the long-awaited reforms and adopt Draft Laws #15111 “On Amendments to the Tax Code of Ukraine and the Law of Ukraine “On Banks and Banking Activity” regarding the Introduction of the International Automatic Exchange of Information on Income Received through Digital Platforms and the Taxation of Such Income,” and #15112 “On Amendments to the Tax Code of Ukraine regarding the Taxation of E-Commerce Transactions with Value Added Tax.”
These initiatives aim to regulate the taxation of income earned through digital platforms and to abolish the VAT exemption for goods valued at up to EUR 150 in international postal parcels. They align with Ukraine’s commitments under international financial assistance programs and demonstrate the country’s readiness to implement reforms.
AmCham Ukraine welcomes the progress made by law enforcement agencies in countering the illegal manufacturing and distribution of excisable goods, including the recent uncovering of a large-scale illicit cigarette production facility in Chernivtsi Oblast. We look forward to the continuation of effective enforcement and further large-scale detections, which will directly contribute to reducing the share of the shadow economy and increasing State Budget revenues. It is also important to eliminate tax avoidance schemes involving the artificial fragmentation of large businesses into groups of sole proprietors to reduce the tax burden.
Ensuring fair and predictable tax policy is essential for maintaining investor confidence, financial stability, and Ukraine’s sustainable economic recovery. It is important to avoid such initiatives as retrospective changes or windfall taxes that undermine the principles of tax certainty and weaken the country’s investment attractiveness.
AmCham Ukraine emphasizes that these measures’ efficiency will depend on proper enforcement. We urge the Parliament, Government, and Ukraine’s law enforcement agencies to intensify their efforts to curb the shadow economy to collect much-needed budget revenues and ensure fair competition.
