Ukraine can increase budget revenue through tax changes, even as analysts predict “moderate” economic growth, according to Revenues and Fees Minister Oleksandr Klymenko.
“We see the opportunity to secure an increase in budget revenue by reviewing tax benefits and introducing transfer-pricing controls,” Klymenko said today in e-mailed comments to Bloomberg News. “We expect to get an additional 20 billion hryvnia ($2.5 billion) for the budget in the next three years” from new transfer-pricing rules.
First-quarter budget revenue rose 6.7 percent from a year earlier to 102.5 billion hryvnia, Klymenko said. To take the effect, a bill on transfer pricing must be approved by parliament and signed by the president.
Ukraine slipped into its second recession in four years in the second half of 2012 as demand for exports such as steel weakened on global markets. The economy contracted 0.5 percent from a year earlier in January, according to the central bank. It will shrink by 1.8 percent this year, Goldman Sachs Group Inc. estimated Jan. 24, while the International Monetary Fund yesterday predicted zero growth.
The budget assumes 3.4 percent economic expansion and revenue of 362.8 billion hryvnia.
The hryvnia rose to 8.1380 per dollar as of 6:30 p.m. in Kiev from 8.1450 yesterday, data compiled by Bloomberg show.