The black market for coffee: Ukraine is losing up to $7 billion
13 April 15:09
The black market for coffee in Ukraine accounts for about 50% of total consumption, which is estimated to result in annual losses to the state budget of nearly $7 billion in tax revenue.
According to "Komersant Ukrainian", this was stated by Danylo Getmantsev, chairman of the parliamentary committee on finance, tax, and customs policy, as reported by Interfax-Ukraine.
According to him, average coffee consumption in Ukraine is about 3.5 kg per person, which amounts to a total annual market volume of 85–105 thousand tons. At the same time, official imports amount to only about 49 thousand tons, which, in the deputy’s opinion, indicates a significant share of the black market segment.
Getmantsev claims that some of the product enters the market through undervaluation of customs value or under the guise of humanitarian aid, after which it is sold in retail chains.
He also noted that a significant portion of unaccounted-for coffee beans ends up in underground production facilities, where they are roasted and packaged under the guise of well-known brands.
Separately, the deputy highlighted the risks of product counterfeiting, where cheaper raw materials or goods nearing their expiration date are purchased in Europe and, after processing in Ukraine, sold as premium-segment products.
As an example, he cited the activities of certain companies which, according to him, may exhibit signs of tax evasion and the use of business fragmentation schemes through sole proprietorships.
Getmantsev called on law enforcement agencies, particularly the Economic Security Bureau, to intensify efforts to identify and stop shadow schemes in the market, emphasizing that a significant portion of violations can be identified based on open data.
