Lockdown consequences for Ukrainian business

Source : 112 Ukraine

Entertainment establishments suffered the most
19:40, 30 October 2020

Due to the introduction of lockdown restrictions in Ukraine, cinemas, travel agencies and hotels have sharply reduced tax payments to state and local budgets, Economichna Pravda reports.

According to the State Tax Service of Ukraine, in March-September 2020, cinemas halved their tax deductions compared to the same period last year, in 6 months of lockdown they paid $ 1.5 million.

Related: Covid-19 may push up to 115 million people into poverty this year, – UN

This year, in July - September, cinemas transferred $ 527,096 of tax deductions to the budgets, which is almost equal to the amount of funds transferred in July last year ($ 597,375).

Tax payments by travel agents and operators also dropped significantly - by 49% compared to last year. In absolute terms, the reduction in tax revenues totaled $ 7 million.

Revenues in the hotel sector have also declined. Over the six months of isolation, Ukrainian hotels and accommodation establishments have paid $ 17 million less than in March-September 2019. The most rapid decline in tax revenues from this industry was in April - almost three times compared to the same month last year.

As we reported earlier, prime Minister of Ukraine Denys Shmygal said that the dollar exchange rate in 2021 is expected to be at UAH 29.

"There is an active preparation of the budget for 2021. There is already a macro forecast ... The exchange rate is set at around UAH 29, that is, it is even a little more optimistic than we laid at UAH 29.5 this year," Shmygal said.

Related: Deficit of Ukraine's state budget increases four times in 2020




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