The EU-funded Public Finance Management Support Programme for Ukraine (EU4PFM) supporting tax/customs reform and capacity building has been launched on 18th June, 2019. Central Project Management Agency (hereafter – CPMA) of the Republic of Lithuania, European Union Delegation to Ukraine and relevant national and international experts will support public finance management institutions of Ukraine in reforming tax and customs administrations to ensure better revenue collection and will help strengthening organizational capacities in public financial management institutions.
The overall objective of the EU4PFM Programme, financed largely by the EU, is to improve Public Finance Management in Ukraine, thereby ultimately improving public service delivery and the business climate. The specific objectives of the Programme that is implemented by Lithuania’s CPMA are to (i) support the further development of a modern, efficient and fair revenue collection system and to (ii) support relevant PFM institutions in the enhancement of their organizational capacities.
Peter Wagner, Head of Support Group for Ukraine (European Commission) said: “EU4PFM is another example of how EU continues to support Ukraine on its transformation path. We cannot emphasise enough the importance of tax and customs administrations for national revenue collection, but also for trade facilitation and overall business environment. I urge the government to adopt an ambitious tax and customs reform action plan. Business community and society in Ukraine are waiting for these reforms.” He added: “Economic recovery and future prosperity depend on having tax and customs administrations that promote voluntary tax compliance of their businesses and citizens. We want to support the Ministry of Finance and its agencies in rebuilding public trust in tax and customs administrations.”
The Programme will support reforms in revenue mobilisation that will strengthen institutional and organisational capacities of Ukrainian institutions in introducing and implementing a modern tax compliance strategy aimed at promoting voluntary tax compliance, reviewing and modernising business processes within the tax and customs administrations, establishing and operationalising the new Financial Investigation Service, broadening Ukraine’s tax base through, inter alia, improved tax-related information flows with other countries, and countering tax avoidance, continuing legal approximation of relevant tax and customs laws and regulations with EU norms and international best practices, and improving capacities of the tax and customs administrations.
At the same time, the Programme will also support legal and procedural changes in customs and trade facilitation areas, in particular by supporting the introduction of the New Computerized Transit System and Ukraine’s joining the Convention on the Common Transit Procedure. Furthermore, the programme will support the introduction and implementation of the Authorised Economic Operator scheme and strengthened customs clearance process. Enhancement of the post clearance controls and improved audit capacity are further objectives of the Programme.
Finally, the Programme will support Ukraine’s PFM institutions in designing and implementing modern Human resources management practices including anti-corruption provisions; it will support reviewing, adapting and automating business processes; it will support modernising institutional structures and practices and it will strengthen capacities of Ukrainian PFM institutions in designing, implementing and monitoring reforms.
