Underground economy of Ukraine reaches up to 42%

Source : 112 Ukraine

The level of black market in Ukraine exceeds 42%, states the Ministry of Economic Development and Trade
17:37, 27 July 2015

Underground economy

Deputy Finance Minister Olena Makeieva during the board meeting of the ministry told: “The level of the underground economy seems to be really high. If we are talking about the official data, estimated by the Ministry of Economic Development, it is 42%. But the industries, taking into consideration their own estimates, claim that these figures are much higher. For example, in the retail sector black market is 60%”.
Makeieva also informed that 40% of the pharmaceutical industry in Ukraine is illegal, as well as 67% of the light industry.
Makeieva, to solve this problem Ukraine needs to create tax incentives for the gradual withdrawal of the business out of the illegal schemes, including an equitable distribution of the tax burden, improving the system of simplified taxation and improving tax administration.
As Ministry of Economic Development and Trade previously stated, the level of underground economy in Ukraine in 2014 increased by 7 percentage points compared with 2013 year - up to 42% of GDP.
According to the Havoscope (Global Black Market database), $4.31 bln are in black market in Ukraine (to compare: China - $261 bln, Russia - $49.04 bln, US - $625.63 bln, Canada $77.8, Austria - $226 mln, Norway - $ 289 mln).

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