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On August 21, 2024, the 5th meeting of the discussion scientific platform under the Ministry of Economy of Ukraine was held, which was joined by more than 60 participants from specialized organizations and scientific institutions involved in the development and implementation of effective management solutions to key challenges of today – Institute for economics and forecasting of the National Academy of Sciences of Ukraine, Institute for Demography and Quality of Life Problems of the National Academy of Sciences of Ukraine, Institute of industrial economics of the National Academy of Sciences of Ukraine.

The research “Lack of budgetary resources and reserves for increasing revenues of the State Budget of Ukraine” was presented by Inna Lunina, Head of the Department of Public Finance of the Institute for Economics and Forecasting of the National Academy of Sciences of Ukraine, Doctor of Economics, Professor, Corresponding Member of the National Academy of Sciences of Ukraine. The study found that the priority areas for increasing tax revenues are measures to broaden the tax base and reduce budget revenue losses, primarily from value added tax. Based on the experience of EU countries, the study identified ways to detect abuses and tax evasion in advance and, accordingly, to significantly reduce budget revenue losses through digital transformation of tax administrations, introduction of real-time reporting and new requirements for electronic invoices, and mass cross-checking of VAT invoices.

The active using of new VAT administration tools in post-socialist EU countries has reduced the VAT tax gap (the difference between potential and actual revenues) on average in these countries from 26.6% of potential tax revenues in 2012 to 9% in 2021, while in Ukraine it exceeds 40%. Scenario assessments have shown that even if VAT evasion is partially eliminated, tax revenues to the State Budget of Ukraine in 2022 could be increased by at least UAH 86-180 billion, or 9-19%.

The meeting also featured speeches by Corresponding Member of the National Academy of Sciences of Ukraine Volodymyr Sarioglo and Lyudmyla Cherenko from the Institute of Demography and Quality of Life Problems of the National Academy of Sciences of Ukraine on the topic “Non-increase of utility tariffs under martial law: Pros and cons”; Dmytro LAZARENKO from the Institute of Industrial Economics of the National Academy of Sciences of Ukraine on ‘Establishment of joint ventures with foreign partners for the utilization and processing of construction waste (PPP)’; Bohdan LOGVYNENKO from the Institute of Industrial Economics of the National Academy of Sciences of Ukraine on ‘Strategic prospects for the development of lithium’.

The participants’ presentations sparked a lively discussion among the expert community on the possibilities of rapid response to critical threats caused by internal and external challenges. Today’s event contributed to the formation of a common position, effective coordination with government agencies and the development of specific practical solutions for the future economic development of Ukraine.