Annual losses of the state budget of Ukraine due to the activities of the shadow sector amount to 500-600 billion hryvnias. The country suffers the greatest losses due to "envelope" salary payments and violations of customs regulations.
This was reported by Minfin citing CASE Ukraine, according to the portal PromPolitInform.
Researchers analyzed ten main schemes that facilitate tax evasion using data from tax, customs, and statistical services for 2025. The list of critical issues included smuggling, corruption risks at the border, illegal circulation of excisable goods, and the use of offshore operations.
The largest share of budget losses is formed by unofficial wages — due to them, the state underreceived from 237 to 262 billion UAH. The second place in terms of damage is occupied by abuses at customs, which cost the budget 110–125 billion UAH annually. The third place is taken by trade in counterfeit products, losses from which are estimated at 37–41 billion UAH.
Systemic steps for the de-shadowing of the economy
Despite the significant volumes of shadow turnover, specialists recorded a decrease in the scale of some schemes, in particular “skrutky” (tax credit manipulation) and capital flight operations to offshore zones. Experts attribute this positive dynamic to the reform of the customs service and the Economic Security Bureau, as well as the strengthening of anti-corruption agencies.
To further reduce the shadow sector, the authors of the report insist on continuing judicial reform and updating the financial monitoring system. Also among the priorities is reducing the fiscal burden on the payroll, which should encourage employers to de-shadow employees’ incomes.
Illustrative photo: Foreign, Commonwealth & Development Office / CC BY 2.0
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