Lesia Karnaukh: State Tax Service accrued more than 221 million UAH of fines for violations during the tobacco product sale

Employees of the State Tax Service have conducted more than 13.2 thousand actual audits of tobacco product sales facilities since the beginning of year. Penalties based on the audit results amounted to more than 221 million UAH. This was informed by acting Head of the State Tax Service Lesia Karnaukh on her Facebook page. 

Tax authority additionally initiated seizure of tobacco products worth more than 19.5 million UAH. 536 licenses were suspended for illegal retail sale.

During a roundtable organized by the American Chamber of Commerce, Lesia Karnaukh noted that question of combating shadow economy is becoming more and more relevant every day.

"When the budget loses huge funds and business operates in unequal conditions, it is not only about money. It is about security of the country. However, just stating the facts is not enough. Whether those who are extremely comfortable working there will come out of the shadows depends on real consolidated steps. And not only on state bodies, but also on business itself. A strong result is impossible without effective coordination with the law enforcement agencies. Where the State Tax Service sees potential abuses, but cannot react due to limited powers, our signals should not be reduced to a formal response" – noted acting Head of the State Tax Service.

According to her, there are many areas for joint work: retail, e-commerce, restaurant business, fixed internet, production and alcohol sale.

State Tax Service constantly works with the Bureau of Economic Security and the National Police to identify and stop illegal production and circulation of tobacco products. This approach allows quickly record violations, seize illegal products and bring the guilty to justice. Together with the Security Service of Ukraine, we have implemented a number of operational measures aimed at identifying tax evasion schemes in this area.

"A separate question is complaints of market players about the inadequate response of tax officials in regions to the illegal sale of cigarettes. I already have signals that some have decided to do without unsubscribing. It will not be possible to ignore the problem. Question has been taken under personal control and everyone who allows shadow economy to develop locally will be responsible for inaction" – emphasized Lesia Karnaukh.