The budget loses 2 billion hryvnia annually due to flower smuggling, according to Getmantsev

Kira Aronova
Kira Aronova Journalist
The budget loses 2 billion hryvnia annually due to flower smuggling, according to Getmantsev
Flower shop illustrative photo from open sources
In Ukraine, 78% of the flower market is in the "shadow," and the state budget's losses from schemes in this sector are estimated at 2 billion hryvnia per year. The MP calls on the Economic Security Bureau and the tax service to take immediate action.

This was announced by Danylo Getmantsev, Chairman of the Parliamentary Committee on Finance, Tax and Customs Policy.

"Only 22% of the actual volume of flower products is legally imported into Ukraine. In 2024, 1,500 tonnes were declared, while according to the international Trade Map database, this figure is almost 7,000 tonnes. The volume of contraband for last year alone is estimated at $1.6 billion, and direct budget losses from VAT alone exceed UAH 324 million," said the committee chairman on his YouTube channel.

According to Danylo Getmantsev, the most critical situation is in the rose import segment. Of the total volume of 3,000 tonnes that entered the Ukrainian market, only 136 tonnes underwent official customs clearance. 

The MP stressed that this indicates the systematic use of schemes involving understatement of customs value and concealed importation of goods.

He also noted that the domestic market is based on the mass fragmentation of business. Currently, more than 13,600 individual entrepreneurs (FOPs) sell flowers, while there are only about 40 active legal entities in this industry. This structure allows large chains to avoid paying VAT and income tax by working through FOPs in the second group.

In addition, the MP pointed out that in job advertisements, large chains indicate wages of 17-36 thousand hryvnias, while tax reports show minimum payments. This allows companies to minimise their single social contribution and personal income tax payments.

Danylo Getmantsev is convinced that the scale and systematic nature of such schemes indicates a deliberate disregard for the problem on the part of regulatory and law enforcement agencies. Because of this, he once again called on the Economic Security Bureau and the State Tax Service to take immediate measures to stop "shadow" schemes in the flower market. 

The parliamentarian emphasised that the lack of an adequate response to such obvious abuses during the war is unacceptable and requires personnel decisions in the relevant departments.

Earlier, Danylo Getmantsev stated that he did not see any significant results from the work of the Economic Security Bureau under the leadership of Oleksandr Tsyvinskyi, who was appointed to the position six months ago.

 

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