Ministry of Finance reviews preliminary results of economy de-shadowing task force, focusing on systemic solutions and preventing abuse

Minister of Finance of Ukraine Sergii Marchenko chaired a working meeting with members of the Interagency Working Group (IWG) on Economy De-shadowing. Senior officials from the Ministry of Finance, the State Tax Service, the State Customs Service, the State Financial Monitoring Service, and the Economic Security Bureau reviewed progress in implementing the decisions adopted following the group’s inaugural meeting, chaired by Prime Minister Yulia Svyrydenko.

The IWG’s objective is to move from addressing individual violations to implementing systemic solutions that prevent abuse and tax evasion, while creating transparent and predictable conditions for doing business.

The measures being developed by the group are intended to protect law-abiding businesses from unfair competition by companies that artificially minimise their tax liabilities and gain an unfair competitive advantage.

Additional State Budget revenues are expected to come primarily from broadening the tax base, reducing the shadow economy, and increasing voluntary tax compliance. The Government sees economy de-shadowing as a way to increase public revenues without placing additional pressure on responsible businesses.

“De-shadowing the economy is one of the Government’s key priorities. It is an essential element of the state’s financial resilience and underpins our cooperation with Ukraine’s international partners. Meaningful results can only be achieved through systematic cooperation among all the public authorities involved. We must move from fragmented efforts to coordinated action. Our shared task is to establish fair and transparent rules for business while minimising opportunities for abusive schemes. This is what responsible businesses expect, and we are responding to that,” said Minister of Finance Sergii Marchenko.

During the meeting, participants reviewed progress in implementing the tasks assigned following the group’s first meeting. They discussed:

• measures to combat tax evasion schemes and the artificial fragmentation of businesses;
• proposals to reduce undeclared employment;
• preparations for introducing the Electronic Excise Goods Tracking System;
• measures to combat the illicit trade in excise goods and strengthen interagency cooperation in this area; and
• legislative and organisational initiatives aimed at reducing the shadow economy and improving the effectiveness of state oversight.

The participants also agreed on the next steps, including measures to tackle the artificial fragmentation of businesses, improve the detection of illegal tax evasion practices, and deepen cooperation among the authorities involved in economy de-shadowing.

The IWG continues its work on a permanent basis, jointly developing legislative and organisational solutions to establish a long-term framework for combating shadow economic practices. The Ministry of Finance will continue coordinating the group’s work and providing updates on its progress.

The group’s inaugural meeting was held on 23 June 2026, co-chaired by Prime Minister Yulia Svyrydenko and Minister of Finance Sergii Marchenko. At that meeting, the Prime Minister identified economy de-shadowing as one of the Government’s strategic priorities, stressing that it is a key expectation of businesses, society, Ukraine’s Defence Forces, and international partners. The meeting concluded with instructions for relevant authorities to prepare comprehensive measures in priority areas of economy de-shadowing.