Klymenko: State Fiscal Service deprived the budget of almost UAH 12 billion
During the 9 months of 2014, the shortfall of tax and customs revenues (that should have been transferred into the budget by the State Fiscal Service of Ukraine) amounted to UAH 11.5 billion. Even taking into account sequestration (which was held in March) and modifications in tax and customs legislation, which actually put the business on the edge of survival, State Fiscal Service has executed budget by only 95%. It has collected UAH 4.5 billion (98%) less than last year. Oleksandr Klymenko – ex-minister of revenue and duties – wrote about it on his Facebook page.
In this situation Oleksandr Klymenko is comparing the actions of the State Fiscal Service and Ministry of the abundance by George Orwell’s “1984”: “… the Ministry of the abundance has increased the rations of chocolate to 20 grams. Across the country there have been carried out thanksgiving demonstrations”. The State Fiscal Service do the same things. According to the ex-minister, “meanwhile, some state departments, for instance, State Fiscal Service from month to month continues to “raise the rate of issuance of chocolate from 30 grams to 20”, presenting it as a great achievement. The Ministry of Finance, using the methods of Orwell’s Ministry of Truth, together with the State Fiscal Service reduces revenue indicators “retroactively” in March – due to sequestration, in August – by adjusting budget allocations towards its decreasing”.
At the same time, Klymenko says, a typical argument of the fiscals is – “because of the war” is not true. In Donetsk and Lugansk regions, UAH 159 million taxes and UAH 778 million customs duties are losses comparing to the last year. Total: UAH 937 million.
According to the ex-minister, these indicators are incomparable with tax shortfalls from large taxpayers, which are controlled by Central Office – UAH 1.7 billion. The fiscals also did not work in Sumy, Ivano-Frankivsk and Chernihiv regions in September. “Overall, the 16 regions of Ukraine did not fulfill the plan on taxes in September. As a result, none of the budget-taxes was fully collected in the budget!” – said Klymenko.
According to the ex-minister, the tax on profits was executed only by 95% – minus UAH 218 million to the plan of the Ministry of Finance, and minus UAH 2.7 billion to the previous year. Excise tax, even though a significant increase in excise duties during the year, was not collected by UAH 111 million.
VAT was executed by only 86% – minus UAH 1 billion from the planned. In September, the collection of this tax amounted to UAH 6.4 billion, which is less than the monthly average fact in 2013 (UAH 7,1 billion), and this year (UAH 6.7 billion). “It is clear that it does not come to deshadowing of the economy and the fight against tax holes. Since the beginning, the tax authorities have prevented UAH 566 million illegally claimed for reimbursement of VAT. It is a drop in the sea, otherwise you could not tell,” – emphasized Klymenko.
Fiscals did not collect more than UAH 4 billion single social contribution from the beginning of the year (97% executed). In September, UAH 14 billion social contribution was received. It is UAH 3.1 billion less than the monthly average in 2013. At the same time, according to the ex-minister, indicators of single social contribution in Donetsk and Lugansk regions are 107% and 121%, respectively.
On the background of such “success”, by September 1, the budget has a debt amounted UAH 65.1 billion to business. Oleksandr Klymenko reminds in his publication that by January 1, general overpayment of business amounted UAH 57.6 billion. It means that the growth of the budget debt to the taxpayers since the beginning of the year has grown by UAH 7.5 billion. Thus, even with the issued government bonds amounted UAH 6.7 billion, the state debt on VAT has not reduced and amounted UAH 30 billion.
According to Oleksandr Klymenko, the numbers demonstrate that the economy is not just stagnating, but actively going into the shadows. Under the conditions of uncertainty, any system switches on mechanisms of a self-preservation bypassing the official procedures and regulations. It means that it is easier and cheaper for business to go into the shadows and pay corrupt rent than working according to official regulations. The same applies to the employees of fiscal authorities themselves.
The ex-minister of revenue and duties concludes: “Obviously, all of us are tired of the bright slogans and promises. We need action, results. But there is none of this. Not only due to the complete lack of professionalism, but also due to absence of the working desire. Because of posturing and personal PR of officials of “new generation”, Ukraine is losing its fiscal system. Not only fiscal system. I’m sure the way of treatment in Ukraine – is not to change and make living “in a new way” or “the old way” of other people. The path of healing – is when each of us begins to do the business professionally, to live according to conscience and justice. Everyone should start with yourself – from the peace and order in his own soul, family, team. In this case we will be able to bring peace and prosperity to our country”.
Link to source: Finance Obozrevatel