The percentage of shadow production in the fuel market has reduced threefold in three years – study
The fuel market was partially "helped" by the war – illegal supplies from russia and Belarus have been cut off, taxes have been lowered
According to the Economic Expert Platform and the Naftogaz Association of Ukraine, the share of illegal fuel makes up the lowest percentage of shadow production – about 11%. At the beginning of 2020, this share was almost three times higher – at 30%.
This is stated in the Mind article A billion dollars for the state budget: how MPs decided to fight the shadow market of alcohol, tobacco and fuel.
"The fuel market, surprisingly, was partially 'helped' by the war. Illegal supply channels (primarily from russia and Belarus) were cut off, taxes were reduced (excise taxes were temporarily abolished, VAT rate decreased from 20% to 7%), which affected not only 'white' manufacturers and distributors of fuel, but also the shadow ones. For them, the production of counterfeit has become unprofitable," the statement says.
Background. The share of the illegal market of tobacco products has tripled since 2020.
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