Ukraine's state budget will miss out on customs payments due to fixed hryvnia exchange rate against the dollar – State Customs Service

In May 2023, customs authorities transferred 34.3 billion UAH in customs and other payments to Ukraine's state budget.

This was reported by the State Customs Service.

It is noted that during May, exemptions from customs payments totalling 14.8 billion UAH were granted, 1.1 billion more than in April. In particular, excise tax benefits amount to 4.1 billion UAH (+0.7 billion UAH), benefits from customs duties and VAT on defence goods – 6.8 billion UAH (+3.4 billion UAH), and benefits within the framework of free trade agreements – 2.4 billion UAH (+0.1 billion UAH).

The customs reports that in May 2023, the share of taxable imports imported into the customs territory of Ukraine increased from 82% (in April 2023) to 94%. The volumes of imported goods, on which at least one tax was levied, increased by 11%. However, as specified, the volumes of goods that were released into free circulation with the provision of benefits from customs payments (taking into account humanitarian aid) decreased by 76%. The main reason for this was a reduction in natural gas imports by 259,000 tonnes with exemption from VAT.

The State Customs Service also noted that in May 2023, customs authorities released into free circulation with the payment of customs duties 2.1 million tonnes of cargo, which resulted in the payment of taxes amounting to 34.2 billion UAH. The main budget-forming goods included:

• 671.5 thousand tonnes of petroleum products, which is 135.6 thousand tonnes more than in April of the current year;
• 105.8 thousand tonnes of fertilisers, which is 126.5 thousand tonnes less than in April of the current year;
• 81.1 thousand tonnes of petroleum gases, which is 6.7 thousand tonnes more than in April of the current year;
• 72.8 thousand tonnes of rolled steel, which is 14.7 thousand tonnes more than in April of the current year;
• 1.0 thousand tonnes of vehicles, which is 9.7 thousand tonnes more than in April of the current year;
• 27.0 thousand tonnes of plastics, polymer materials and products thereof, which is 1.9 thousand tonnes more than in April of the current year.

In addition, certain objective factors are observed that negatively affect the volumes of customs payments. "In particular, traditional for 2023 is the 'stable' official US dollar exchange rate at the level of 36.57 UAH/USD, while the 'budget' rate is 13% higher – the calculated under-receipt of taxes in the reporting period amounted to 5.28 billion UAH," the State Customs Service reported.

Background. Earlier, Mind reported that the total amount of revenues to the state budget in May amounted to 324 billion UAH.