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In particular, general tax receipts increased 8.6%, while VAT reimbursement surged 24.8% y/y. Customs revenue increased 8.2% y/y to UAH27.6bn, which is 9.6% below plan. Local fiscal revenue improved 17.6% y/y to UAH62.3bn in January-March, underperforming plan by 3.5%. Social payments (pension and other social fund contributions paid by employers) advanced 23.2% y/y to UAH61.3bn.
Evgeniya Akhtyrko at Kyiv-based brokerage Concorde Capital wrote in a note on April 2 that budget revenue growth slowed down in March, as customs revenue subsided once an amnesty on EU-registered vehicles ended on February 24.
"Meanwhile, regular budget collections in March were not impressive," she added. The growth of net tax revenue was weak amid high VAT reimbursement to exporters. As in the two previous months, custom revenue stays below plan. The poor collections during three consecutive months looks worrisome. Tax collection agencies are likely to intensify pressure on taxpayers in order to catch up on lagging budget collections in the nearest months."
6.1.3 Budget dynamics - privatization
The State Property Fund (SPF) of Ukraine is going to announce a new privatisation tender for a controlling stake in state power producer Centrenergo on May 16.
This date has been mentioned in supporting documents to the draft government resolution passed at the cabinet meeting in Kyiv, news agency Interfax reported on April 10. In late March, the Ukrainian authorities promised to put up for sale a controlling stake in Centrenergo again in April.
Earlier, the Ukrainian cabinet approved a starting price for the sale of the 78.3% stake in Centrenergo of UAH5.98bn ($210mn).
In a separate resolution, the Ukrainian government approved the conditions for the sale of the company. Specifically, the conditions provide for Centrenergo’s payment of dividends to the national budget in the amount of 30% of net profit for 2018, while the draft resolution contained the text on the payment of dividends in accordance with the standard approved by the government, which in 2017 was 75%, and 2016 50%.
According to an earlier statement of the State Property Fund (SPF), the first tender was cancelled due to the fact that two participants - Ukrdoninvest and the production unitary enterprise Oil Bitumen Plant - are not allowed to participate in the tender, "since the documentation submitted by them does not meet the requirements of the legislation".
Amongst the companies that announced an intention to bid were Ukraine’s largest private gas producing companies Ukrnaftoburinnia that is controlled by Ukraine’s richest man Ihor Kolomoisky.
Kyiv-based company Forbes and Manhattan Ukraine, headed by member of the advisory board of the Canadian bank Forbes & Manhattan Mykhailo Spektor, also announced its intention to participate in the tender.
In addition, Belarusian unitary enterprise Neftebitumen Plant, owned by one of
43 UKRAINE Country Report May 2019 www.intellinews.com