AmCham urges Ukrainian govt to step up fight against shadow economy

MOSCOW. Nov 22 (Interfax) - The American Chamber of Commerce in Ukraine (AmCham) has urged the Ukrainian government and law enforcement agencies to step up the fight against the shadow economy as much as they could in order to ensure payments to the budget and fair competition.

"A substantial share of shadow markets still remains. The business community's voice must be heard: all individuals and legal entities operating in Ukraine should pay their fair share of taxes currently in effect. Eliminating shadow markets will not only establish a level playing field but also enhance the country's investment attractiveness," Ukrainian media said, citing a statement on the AmCham website.

AmCham Ukraine has been systematically working to combat shadow markets across various sectors of the economy, it said, The chamber referred to recent sectoral studies of the Economic Expert Platform and said they demonstrated positive developments, particularly in reducing the scale of illegal markets for certain excisable goods.

According to studies, illegal production of tobacco products decreased to 18% in the third quarter of 2024, versus 26% in the previous quarter and 32% in the first quarter of 2024.

Shadow production in the alcohol market has been decreasing throughout this year: it was 40% in the first quarter, 35% in the second quarter, and 22% in the third quarter 2024.

At the same time, shadow production in the fuel market continued to grow for the third quarter in a row and amounted to 18% (13% in the first quarter of 2024 and 14% in the second quarter).

"Over ten months of 2024, it was possible to ensure the receipt of $1.67 billion in the state budget from de-shadowing," the statement said.