State budget of Ukraine: STS’s results in the first quarter of 2020

General fund of the State budget received 110.8 billion UAH in the first quarter of 2020 – this is 14.3 billion UAH or 14.9% more than in 2019.

Revenues growth compared to the corresponding period last year in the context of main budgetary payments is the following:

-          VAT (balance) + 10.1 billion UAH or + 63.8%;

-          Excise tax + 2 billion UAH or + 19.0%;

-          Personal income tax and levy + 4.1 billion UAH or + 16.8%;

-          Income tax + 4.6 billion UAH or + 15.8%.

Revenues decrease is observed only in rent (- 5.5 billion UAH or - 48.8%) which happened due to a twofold decrease in the price of natural gas and, as a consequence, the decrease in its production volumes.

Also, revenues from the excise tax on electricity decreased by 0.9 billion UAH or by 58.1% in comparison to 2019. This is reasoned by the withdrawal of operations on the sale of electricity produced from renewable source from the taxation base.

Excluding payments that do not actually depend on the efficiency of administration by the State Tax Service, but rather reflect changes in legislation and macroeconomic factors (excise tax on electricity and mineral extraction), the Ministry of Finance’s indicators for the first quarter were fulfilled in the full amount + 0.2 billion UAH or 100.2 %.

It should be noted that indicators of the revenue part of the Law on the state budget for 2020 were determined on the basis of macroeconomic indicators that predicted economic growth, including real GDP by 3.7%.However, due to the global crisis and other adverse factors, the macroeconomic projection was revised: Ukraine’s GDP is expected to decrease by 3.9% according to the Ministry for Development of Economy.

“Figures show that the tax revenues are rising despite the economic slowdown. We keep un-shadowing those business entities and economic sectors that previously did not fully pay taxes and evaded payments. As follows, we ensure an equal level playing field and fair competition for the tax-paying entrepreneurs. This is a function of the Tax Service” – emphasized Chairman of the STS Serhii Verlanov.