The Ministry of Finance is launching the complex reform of the State Fiscal Service jointly with the SFS

6/28/17

The Ministry of Finance and the State Fiscal Service are launching – with the support of Prime Minister Volodymyr Groysman – a complex reform of the State Fiscal Service. On June 27, a kick-off meeting on the launch of the reform took place which was attended by Minister of Finance Oleksandr Danyliuk and interim Head of the State Fiscal Service Myroslav Prodan.

What’s it about?

The project is aimed to implement the recommendations of Ukraine’s international partners and ideas of the Ministry of Finance, State Fiscal Service, MPs and experts.
In the course of the reform, working processes shall be streamlined, the key functions of the SFS shall be enhanced, the effectiveness of tax administration shall be increased and the quality of services shall be improved. The key goal is to tackle corruption and to turn the SFS into a motivated service-oriented state agency.

The project will be implemented by the Ministry of Finance and the State Fiscal Service supported by the experts of an international consulting company.

The project will have a three-level structure:

The first level is the Supervisory Board which includes representatives of government agencies from the countries of the West, international organizations and funds (US Treasury, IMF, European Bank for Reconstruction and Development (EBRD), Ministry of Finance of Canada, Ministry of Finance of Germany, US Customs and Border Protection as well as representatives of the EU). The Supervisory Board coordinates the project, approves objectives and monitors the project implementation.
The second level is the Steering Committee whose members are the Minister of Finance, the Head of the State Fiscal Service, the Deputy Head of the State Fiscal Service, the State Secretary of the Ministry of Finance and the project manager. The Steering Committee will be meeting once a week to discuss the reform implementation process. It sets priorities, tasks and settles differences.

The third level is the Reform Implementation Group whose members are representatives of the Ministry of Finance, State Fiscal Service, IMF, reform support teams at the Ministry of Finance and SFS as well as international advisors. This group will be ensuring the practical implementation of changes in different areas including audit, customer service, legal compliance, build-up of internal processes at the SFS etc.

The first step will be to make a diagnostic to identify the priorities of the project which shall be approved by the Steering Committee. Following that, the Reform Implementation Group will be implementing them step by step.

At the same time, the international Supervisory Board will be professionally supervising the project aimed to “restart” the State Fiscal Service.

Also, the personnel of the State Fiscal Service shall be gradually replaced.

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