Oleksandr Klymenko Points to Ukraine's Budget Shortfall as Opportunity to Promote Growth

KIEV, Ukraine, September 16, 2014 /PRNewswire/ --

Former Ukrainian Minister of Revenues and Duties Oleksandr Klymenko (http://oleksandrklymenko.com) recently evaluated budget conditions in Ukraine and drew on his Ministry's prior reforms as a mechanism for overcoming current deficit areas to achieve tax-related growth.

Oleksandr Klymenko noted that over the first eight months of 2014, the State Fiscal Service of Ukraine experienced a UAH 12 billion budget shortfall of tax and customs revenues. Compared to the same period in 2013, UAH 4.5 billion less in tax payments were collected despite the sharp devaluation of the Ukrainian hryvnia in much of 2014. Customs collections are also down by UAH 5.6 billion of the 2014 projected figure.

Oleksandr Klymenko, who served as Minister of Revenues and Duties from December 2012 to February 2014 (http://oleksandrklymenkotaxesukraine.com), observed, "Once the conversion centers, tax pits and other illegal barriers to collection are eliminated, the budget will instantly benefit from a flow of billions of hryvnia."

Collections from income tax and VAT have also suffered to-date in 2014, down UAH 6.4 billion and UAH 2.3 billion, respectively, compared to the same period in 2013 when Klymenko headed the Revenues and Duties Ministry.

A reformer who instituted successful, far-reaching initiatives while in office, Klymenko's (http://oleksandrklymenko4euintegration.com/) efforts included significant strides in electronically streamlining the country's tax system and increasing the number of Ukrainian taxpayers using a digital platform.

The leader established a Monitoring Center which provided his Ministry with a powerful analytical tool and data support platform based on cutting-edge IT developments. Its intent was to increase tax efficiency while enabling maximum exposure and transparency. The Monitoring Center was implemented to combat tax fraud and evasion attempts. The Center's success was evidenced by a sharp increase in VAT collection into the Ukrainian Treasury.

Forbes Magazine (http://forbes.ua/nation/1369815-aleksandr-klimenko-sistemy-obnalichki-nelzya-pobedit-za-odin-den) previously noted that in order to shift the tax system from a purely fiscal body to one with a consumer-friendly service orientation, Klymenko opened over 500 taxpayer service centers throughout Ukraine. These were designed to improve tax reporting and the quality of tax administration as well as to help citizens understand the tax system and the penalties for abusing it.

Klymenko points to the need to re-focus on his administration's previously-established innovations as a proven methodology to facilitate reforms, grow revenues and combat corruption in Ukraine's tax system.

For additional information:
Andrey Sokolov, Adviser to Oleksandr Klymenko
[email protected] / +380677658787
 

SOURCE Office of Oleksandr Klymenko