The volume of customs concessions in Ukraine has increased due to the defense sector and the energy sector's recovery

In May of this year, Ukraine’s state budget received 68.9 billion hryvnias in customs duties, while the amount of import duty exemptions granted reached 32.8 billion hryvnias. This figure accounts for 47.6% of all actual budget revenues. 

According to the State Customs Service, the volume of preferential benefits granted increased by UAH 8.7 billion (or 35.9%) compared to May of last year, when the amount of benefits was UAH 24.2 billion. In total, since the beginning of the year, businesses and the state have received UAH 174.9 billion in customs preferences, which is 51.3% higher than the corresponding figures for last year. 

The lion’s share of all exemptions from customs duties, VAT, and excise taxes was accounted for by defense-related goods—they accounted for 59.4% of the total value of preferences, which amounts to 19.5 billion UAH. Second place was taken by exemptions for the import of excise-taxable tobacco raw materials for further production in Ukraine, which amounted to 16.4% or 5.4 billion UAH.

The remaining preferences were distributed among import duty exemptions under existing free trade agreements, which provided importers with savings of UAH 3.9 billion (12%), and preferential treatment for equipment used to repair and restore damaged energy infrastructure, which accounted for 7.3% or UAH 2.4 billion. Other legally defined preferential measures accounted for another 5% of the total volume, equivalent to UAH 1.6 billion.