American Chamber of Commerce urges Cabinet, law enforcers to step up efforts to combat shadow economy – statement

The American Chamber of Commerce in Ukraine has called on the Cabinet of Ministers and law enforcement agencies of Ukraine to step up efforts to combat the shadow economy to ensure budget revenues and fair competition.

"There is still a significant level of shadow markets. The voice of business must be heard, all individuals and entities operating in Ukraine must pay their fair share of the taxes in effect today. The elimination of shadow markets will not only ensure a level playing field, but will also increase the country's investment attractiveness," the association said in a statement on its website on Thursday.

According to the publication, the American Chamber of Commerce has long been systematically working on the issue of combating shadow markets in various sectors of the economy.

Referring to the study of the level of shadow production by industry, the American Chamber's Economic Expert Platform states positive changes are noticeable, in particular – a decrease in the level of illegal markets for certain excisable goods.

According to the study, the level of illegal production of tobacco products in Q3 2024 decreased to 18% compared to 26% in the previous quarter and 32% in Q1 2024.

Throughout this year, the level of shadow production in the alcohol market decreased: it was 40% in Q1, some 35% in Q2 and 22% in Q3 2024.

However, the level of shadow production in the fuel market continued to grow for the third quarter in a row and amounted to 18% (13% in Q1 2024 and 14% in Q2).

"The business community is grateful for the efforts and leadership in this fight to the MPs, law enforcement and fiscal authorities. Thanks to joint efforts, over ten months of 2024, it was possible to ensure the receipt of $1.67 billion in the State Budget from de-shadowing," the chamber said.