Ukraine budget revenue rises 20% in 8M21

Ukraine’s state budget revenue provisionally rose
19.5% yoy to UAH 823 bln in 8M21, outperforming the plan by 6.3%, the State
Treasury reported on Sept. 1. Net tax revenue increased 15.2% yoy to UAH 410 bln
(5.4% above the plan) amid 13.0% yoy growth in gross tax revenue and a 4.4% yoy
increase in VAT reimbursement. Customs revenue jumped 37.5% yoy to UAH 244 bln
(3.5% above the plan).

Local budgets’ fiscal revenue improved 20.4% yoy to
UAH 227 bln in 8M21, which is 6.9% above the plan. Social payments (pensions
and other social fund contributions paid by employers) advanced 19.6% yoy to
UAH 221 bln.

In August alone, state budget revenue surged 41.7% yoy
to UAH 142 bln, which is 8.7% above the plan. Net tax revenue advanced 41.0%
yoy to UAH 79 bln (3.1% above the plan) amid a 38.9% yoy jump in gross tax
revenue and a 25.7% yoy increase in VAT reimbursement. Customs revenue surged
35.5% yoy to UAH 36 bln (0.4% above the plan).

Evgeniya Akhtyrko: Gross revenue
from VAT grows faster than VAT reimbursement, helping to maintain the high
growth rate of tax revenue. The growth of customs revenue was in line with the
government’s expectations, given the closeness of the result to the plan.

We don’t expect Ukraine’s budget collections to
face any major difficulties through the end of the year. Apparently, the
government managed to achieve a consistent improvement in tax payment
discipline.