The International Monetary Fund (IMF) emphasized the need for Ukraine to decisively reduce the volume of the shadow economy, which, according to government estimates, exceeds 30% of the gross domestic product. This issue became one of the key topics during the recent negotiations between the IMF mission and representatives of the Cabinet of Ministers in Kyiv.
This is reported by Business • Media
IMF Funding Conditions
Chairman of the Verkhovna Rada Committee on Finance, Danilo Hetmantsev, confirmed that the Ukrainian side discussed the conditions for further funding with IMF representatives, the main one being the de-shadowing of the economy. According to him, the potential for legalizing shadow flows amounts to at least 900 billion UAH annually.
“In the shadow, we can find at least ₴900 billion a year,” noted Hetmantsev.
Combating the Illegal Market for Excise Goods
The European Business Association has already appealed to the G7 countries, urging them to enhance support for Ukrainian law enforcement agencies in combating illegal trade in excise goods. The business community emphasizes the importance of uncovering and eliminating channels for the distribution of illegal tobacco products, as well as strengthening sanctions against those involved in the organization of illegal production and circulation of cigarettes, electronic cigarettes, and their liquids.
For its part, the International Chamber of Commerce (ICC Ukraine) also highlighted the necessity of reducing the share of the shadow economy, especially following the recent visit of the IMF mission. The organization reached out to the regional representation of the IMF with a proposal to become more actively involved in addressing the issue of the illegal tobacco market. The appeal states that the IMF’s participation in this process is intended to significantly strengthen the fight against the shadow economy and contribute to the growth of tax revenues to the state budget.