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This was reported by Minister of Finance of Ukraine\u00a0<\/span>Serhii Marchenko<\/span><\/strong> during a meeting with the companies of the European Business Association on June 20. The state budget of Ukraine is currently adjusted to martial law and reduced to secured expenditures. Currently, expenditures are relatively stable, primarily in the areas of security and defense, social protection, education, and healthcare.<\/span><\/p>\n State budget revenues are currently fluctuating. As of today, customs provides about 30% of pre-war revenues \u2013 in May it was UAH 9.5 billion, in April – UAH 8 billion, and UAH 7 billion in March. A number of relaxations were made at customs, including the abolition of VAT and import duties. The Minister expressed hope that in the near future draft law \u21167418 will be adopted and import duties and VAT will be restored.<\/span><\/p>\n The situation in the tax sphere is slightly better; currently, the State Tax Service provides about 70% of pre-war revenues. Besides, the VAT refund process was unblocked this month.<\/span><\/p>\n Government expenditures are currently covered primarily by tax payments, which are also the only possible source of funding for military needs, as well as by international partners for social and humanitarian needs and military bonds.<\/span><\/p>\n In the budget process, the Ministry of Finance is considering a baseline scenario for the duration of the war until the end of the year, while a group of experts is currently working on modeling various macroeconomic scenarios for 2023. According to the Ministry of Finance, the economy is expected to decline by 30% this year. However, much will depend on the further deployment of hostilities, the situation with seaports, etc.<\/span><\/p>\n Inflation in Ukraine has accelerated to 18%. However, according to Mr. Marchenko, inflation of up to 20% is an acceptable indicator in the realities of supply chain breaks, critical shortages of some goods, and fuel problems that triggered a rise in prices.<\/span><\/p>\n Answering the questions of the meeting participants, Mr. Marchenko confirmed the relevance of the Program of Affordable Loans 5-7-9% and confirmed that no additional increase in excise duties on tobacco, will not happen, except for the planned ones. The Minister also listened to the suggestions on the development of a procedure for determining insolvency and reporting.<\/span><\/p>\n The companies also raised issues of tax indexation, critical imports, taxation of charity, tax residency of Ukrainians who have been abroad for more than 6 months, debt restructuring, and others. Besides, it was agreed to submit a range of issues to the Ministry in writing for further processing, as well as to bring some voiced issues to a separate meeting with representatives of the State Tax Service of Ukraine.<\/span><\/p>\n We thank Mr. Marchenko for his time and dialogue with business!<\/span><\/p>\n <\/p>","protected":false},"excerpt":{"rendered":" This was reported by Minister of Finance of Ukraine\u00a0Serhii Marchenko during a meeting with the companies of the European Business Association on June 20. The state budget of Ukraine is currently adjusted to martial law and reduced to secured expenditures. Currently, expenditures are relatively stable, primarily in the areas of security and defense, social protection, […]<\/p>\n","protected":false},"author":23406,"featured_media":418133,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false},"categories":[118,4,5,13],"tags":[],"yoast_head":"\n