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Evgeniya Akhtyrko: The overall trend in budget collection didn’t change much in June from the previous month: tax collections continue to be strong even amid significant VAT reimbursement, while customs performance remains very poor. Apparently, relatively slow import growth, coupled with appreciation of the national currency, are restraining the growth of customs collections. However, the major reason for the chronic customs underperformance is notorious corruption in this government body.
So far, the government is managing to compensate low custom revenues with the strong flow of tax revenue and increased debt financing. However, it is unclear how long such a situation might endure amid relatively weak economic growth.
34 UKRAINE Country Report August 2019 www.intellinews.com