The Cabinet of Ministers of Ukraine gave greenlight to the State Fiscal Service reform by adopting regulations on the state tax and state customs services

3/6/19

On December 18, 2018, the Cabinet of Ministers adopted a resolution on reorganization of the State Fiscal Service by dividing it into the State Tax Service and State Customs Service.

In execution of this decision, at today's meeting, the Government approved with recommendations the resolution regulating the operation of the two services, establishing their legal status, key tasks, employees’ rights and duties in the sphere of tax and customs policy implementation, as well as stipulating the powers of the heads of the State Tax and State Customs Services.

"Adoption of the regulations on the state tax and customs services will create conditions for the full realization of the new functions by the newly established services in the field of tax and customs policy. SFS reform is our major obligation before the responsible business. The division of the SFS will create the basis for demilitarization of tax authorities, improve the quality of services provided to taxpayers, increase transparency and accountability of the tax and customs authorities. At the same time, our task is to conduct SFS reform in the least painful way possible for the business community," said Deputy Minister of Finance Serhii Verlanov.

According to the respective provision, the State Tax Service is a central executive body in charge of implementing state policy in the sphere of taxation, administration of the unified social tax, combating offenses in the course of application of tax legislation and application of other legislative provisions under the SFS purview. Operation of the State Tax Service is directed and coordinated by the Cabinet of Ministers through the Minister of Finance.

The provision on the State Customs Service stipulates that the service is a central executive body implementing state customs policy, state policy in the field of combating offenses in the course of application of customs legislation. Activities of the State Customs Service are directed and coordinated by the Cabinet of Ministers through the Minister of Finance.

Adoption of the said provisions is a prerequisite for a transparent contest for the appointment of an effective and reform-oriented leadership of the new state services.

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