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Fight against illegal filling stations can be temporarily entrusted to law enforcement agencies

KYIV. Oct 25 (Interfax-Ukraine) – An interdepartmental working group on de-shadowing the economy points to the need to temporarily entrust responsibilities for combating the shadow market of oil and lubricants to law enforcement agencies in view of liquidation of the State Fiscal Service.

"Due to the shadow market of oil and lubricants, the state loses UAH 3.7 billion a year. The members of the working group indicated that a legal conflict has arisen at present, since the function of combating the activities of illegal filling stations was mainly entrusted to the State Fiscal Service, which is in a state of liquidation," the Ministry of Economy said in a report following a meeting of the working group.

"To solve these problems, it became necessary to temporarily assign functions to other law enforcement agencies pending the establishment of a body that will become a legal successor to perform permanent functions," the ministry added.

In general, the working group under the leadership of First Deputy Prime Minister, Minister of Economy Oleksiy Liubchenko considered a number of measures to bring the economy out of the shadow, in particular, de-shadowing land relations, the alcoholic beverage industry, the oil and lubricants market and preventing the operation of illegal filling stations.

As the Ministry of Economy pointed out in the report with reference to expert estimates, the volume of shadow land lease reaches UAH 20-70 billion annually. As for the alcoholic beverage industry, here about 40% of the market is in the shadow, because of this the state budget loses about UAH 10 billion annually, the ministry said.

"The head of the working group proposed to involve the Institute for Economics and Forecasting of the National Academy of Sciences of Ukraine, in order to assess how the establishment of a minimum retail price affects the level of market shadowing, as well as to develop proposals to support legal manufacturers. Also, proposals were made to law enforcement agencies to develop measures to improve the efficiency of work in preventing violations in this sector," the report said.

The meeting was attended by representatives of the Ministry of Economy, the Ministry of Finance, the Ministry of Agrarian Policy and Food, the Bureau of Economic Security, the State Treasury Service, the National Bank, the National Police, the State Tax Service, the State Customs Service, the State Financial Monitoring Service, the National Securities and Stock Market Commission and other bodies, as well as representatives of the Federation of Employers of Ukraine.