Page 35 - UKRRptOct19

Net tax revenue rose 15.8% y/y to UAH331bn (0.3% above plan). Customs revenue declined 3.1% y/y to UAH233bn (11.5% below plan).
Local budgets fiscal revenue improved 17.6% y/y to UAH205bn in 9M19, which is 1.4% above plan. Social payments (pension and other social fund contributions paid by employers) advanced 21.3% y/y to UAH199bn.
In September alone, Ukraine’s state budget revenue increased 1.1% y/y to UAH68bn, which is 7.3% y/y below plan. Net tax receipts advanced 12.7% y/y to UAH28bn, which is 6.5% below plan. In particular, general tax revenue rose 7.1% y/y to UAH40bn, while VAT reimbursement dropped 4.1% y/y to UAH12bn. Customs revenue declined 12.6% y/y to UAH27bn, which is 15.5% below plan.
“The September budget collections hardly demonstrated any improvement from ​the previous month​. Even with lower VAT reimbursement, net tax collections couldn’t reach plan,” ​Evgeniya Akhtyrko of Concorde Capital said in a note. ​“We don’t expect the situation with tax collections to improve noticeably though the year end. The new government can't increase pressure on taxpayers as this would hurt its pro-business image. As for customs, it should take some more time before the positive results of reforms are to be seen.”
Ukraine’s general budget revenue dropped 2.6% y/y to UAH114.2bn in August ​after a prior-month advance of 20.4% y/y, the State Treasury reported on September 26. General budget expenditures increased 12.3% y/y to UAH101.5bn, slowing from 13.9% y/y growth in July. General budget surplus amounted to UAH12.7bn, swelling from the surplus of UAH3.0bn in July.
Tax revenue rose 4.2% y/y in August, slowing from 12.9% y/y growth in July. Rental payments for using natural resources declined 13.1% y/y (vs. a 6.1 y/y fall in July). In addition, excise tax revenue declined 7.8% y/y in August (vs. a 9.6% y/y slide in July). Net VAT revenue jumped 36.1% y/y after a 51.8% y/y surge in July. In particular, gross VAT revenue improved 22.3% y/y while VAT reimbursement gained 13.6% y/y. Personal income tax revenue rose to 17.9% y/y (vs. a 27.0% y/y climb in July). In addition, the enterprise profit tax advanced 13.5% y/y (vs. a 53.1% y/y drop in July).
Non-tax revenue declined 39.7% y/y in August (vs. an 89.7% y/y surge in July). The decline was mostly due to a 85.6% y/y plunge in revenue from income from ownership and entrepreneurial activity (vs. almost six-time y/y growth in July).
In 8M19, the general budget surplus amounted to UAH36.1bn.d
35​ UKRAINE Country Report​ October 2019 ​ ​www.intellinews.com