The volume of the shadow economy in Ukraine has reached over 1 trillion UAH, significantly impacting competitiveness in key sectors such as agriculture, retail, and manufacturing. This was reported by the head of the parliamentary committee on finance, tax, and customs policy, Danilo Hetmantsev.
This is reported by Finway
Main Issues of the Shadow Economy
Among the main challenges for the Ukrainian economy are smuggling, the payment of salaries in envelopes, and manipulations with value-added tax through the division of large businesses into networks of individual entrepreneurs. Such schemes lead to significant losses in tax revenues and harm honest market participants.
“If we allow the parallel existence of white and black systems within one jurisdiction, we have no future for the normal development of the economy. This distorts the conditions for fair competition, which harms transparent businesses,” emphasized the MP.
Parliament’s Priorities for 2026
De-shadowing the market for excise goods, including fuel, tobacco products, and alcohol, has been identified as one of the key tasks of the Verkhovna Rada for 2026. According to Hetmantsev, although certain results have been achieved in the fuel sector, the tobacco industry recorded an increase in the share of the illegal market to 18% by the end of 2025.
In 2024, thanks to de-shadowing measures, the Ukrainian state budget received an additional approximately 2.5 billion dollars. This year, further implementation of the European Customs Code and enhanced control over transfer pricing are planned for more effective combat against the shadow economy.