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The black market in electronics costs the budget 20 billion hryvnias a year

The black market in electronics costs the budget 20 billion hryvnias a year

08 July 2026, 09:30

The black market in electronics costs the budget 20 billion hryvnias a year — Over 40 per cent of companies report an average salary below the market rate.

The Ukrainian market for electronics and household appliances remains one of the sectors with a high level of the shadow economy. According to estimates by the parliamentary tax committee, the state budget loses around 20 billion hryvnias each year due to tax evasion schemes.

This was announced by Danylo Getmantsev, chair of the Verkhovna Rada’s Tax Committee.

According to Getmantsev, an analysis of the top 50 companies in the electronics and household appliances sector has revealed several worrying trends.

Over 40 per cent of companies report average salaries below market levels. According to Work.ua, the average salary in this sector exceeds 25,400 UAH per month. Such a discrepancy may indicate the use of undeclared labour or the payment of part of the salary ‘under the table’.

Another issue is VAT payments. Between January and April 2026, 72 per cent of companies in the sample analysed had a VAT payment rate below the industry average of 2.64 per cent. According to Getmantsev, some companies declare zero VAT charges at all.

Why shop takings raised suspicions

The analysis paid particular attention to quarterly takings recorded via cash registers and point-of-sale systems. In retail chains with a comparable number of outlets, these figures can vary significantly.

According to Getmantsev’s assessment, this may indicate that some retailers of electronics and household appliances are concealing their actual turnover.

How much is the budget losing?

According to the chair of the tax committee, due to large-scale tax evasion schemes, the Ukrainian budget loses around 20 billion hryvnias annually in this sector alone.

This refers to potential losses from ‘grey’ imports, the concealment of actual sales, the underreporting of tax liabilities and wage schemes.

Why this is a problem for legitimate businesses

The shadow economy creates an uneven playing field for companies that officially import goods, pay taxes, process sales via cash registers and declare their employees’ actual wages.

Under such conditions, legitimate retailers find themselves at a competitive disadvantage, as they cannot lower prices by evading taxes or concealing turnover.

What is expected of the Economic Security Bureau and the State Tax Service

Getmantsev stated that, despite searches by the Economic Security Bureau and enforcement measures by the State Tax Service, there have been no tangible results so far in the fight against shadow schemes in this market.

In his view, the sector requires systematic de-shadowing, rather than just isolated inspections.

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