REUTERS
Losses from illegal trade in petroleum products due to the shortfall in excise tax revenue in 2015 amounted to UAH 1.2 billion, the State Fiscal Service (SFS) reported in its statement released after a meeting of the SFS management with manufacturers and distributors of petroleum products in Ukraine.
The SFS stresses that the petroleum market in Ukraine has been de-monopolized, but there are still reports that some manufacturers seek to operate in the shadows. According to the SFS, confiscation of petroleum products and elimination of its illegal production by the tax police takes place on a daily basis. Last year, 35,000 tonnes of petroleum products worth UAH 620 million were confiscated.
In early 2016, a total of 2,300 tonnes of illegal petroleum worth UAH 40 million has been seized and about 40 illegal filling stations have been shut down, according to the SFS.
In many cases producers of petroleum products, who tried to evade payment of excise tax last year, did not declare production of gasoline blends, or they were involved in manipulation with the Ukrainian Classification of Commodities for Foreign Economic Activity codes, imported petroleum products in violation of customs rules, including, at a lower cost. Local budgets alone suffered a loss of UAH 80 million due to the shortfall in petroleum tax revenue monthly, according to the SFS.
"The identified facts will be verified in 2016," the SFS stressed.