Ukraine budget revenue rises 2.5% yoy in 8M20

Ukraine’s state budget revenue rose 2.5% yoy to UAH 689
bln in 8M20, which is 2.8% below plan, the State Treasury provisionally
reported on Sept. 1. Net tax revenue jumped 17.3% yoy to UAH 356 bln (5.3%
above plan) amid 9.7% yoy growth in gross tax revenue and a 12.1% yoy fall in
VAT reimbursement. Customs revenue plummeted 13.8% yoy to UAH 178 bln (15.9%
below plan).

Local budgets’ fiscal revenue improved 2.9% yoy to UAH
188 bln in 8M20, which is 5.6% below plan. Social payments (pension and other
social fund contributions paid by employers) advanced 4.9% yoy to UAH 185 bln.

In August alone, state budget revenue increased 14.3%
yoy to UAH 87.0 bln, which is 15.2% above plan. Net tax revenue jumped 12.2% to
53.6 bln (33.2% above plan) amid a 5.4% yoy growth in gross tax revenue and a
24.5% yoy slide in VAT reimbursement. Customs revenue advanced 6.5% yoy to UAH
26.9bln (1.1% above plan).

Evgeniya Akhtyrko: It is
encouraging that budget collections picked up significantly in August. A jump in
net tax collection was mostly due to a significant drop in VAT reimbursement,
which is the result of weak exports. At last, customs revenue managed to show
year-on-year growth. For the moment, it looks like budget collections will be
able to keep up with the downward adjusted budget plans through the end of the
year.