Trade is the basis of the economy: How much tax retailers paid during the year of the great war

Over 12 months of last year, companies from various retail sectors paid more than UAH 90 billion in taxes, 40% of which were paid by food retailers.

According to a study conducted by the Retail Association of Ukraine based on the official tax returns submitted by retailers for 2022, the total amount of taxes paid exceeded UAH 90 billion.

Among the nine main sectors of Ukrainian retail, including entertainment, the food retail industry stands out. In particular, FMCG operators paid over UAH 35 billion to the budgets of all levels. This accounts for about 40% of the total result achieved by the entire Ukrainian retail industry.

It is worth reminding that before the war, retail belonged to top 5 largest Ukrainian profit-makers. Despite the losses incurred by the chains during the full-scale invasion (premises, equipment, stocks in warehouses, etc.), Ukrainian trade continues to recover and provide a strong economic base. Although this dynamics does not correspond to the recovery of profits compared to pre-war times, the industry remains one of the main sources of budget revenues, as the largest share of taxes that are included in the budgets of all levels is VAT, PIT (personal income tax) and excise tax. That is, the consumption and labour payment taxes.

The fact that the largest share of taxes paid to the budgets of all levels is accounted for by grocery retailers can be easily explained, as the consumption of essential goods is a top priority for the population. Food retail is a great example of a sustainable social business which actually became a stronghold of the country’s food safety.

In this regard, it is also worth noting the data of a survey conducted by the Retail Association of Ukraine among 57 RAU member chains, which united 10,016 outlets before the start of active hostilities. In particular, the survey showed that in 2022, payments to the budgets of all levels by representatives of nine retail sectors totalled UAH 56.6 billion. And the majority of this amount is still made up of taxes paid by grocery retailers. Fuel sales take the second place. Generally, the poll covered the companies from the following food and non-food retail sectors: drugstore networks, filling stations, jewellery stores, fashion stores, electronics and household appliances stores, building materials stores, and entertaining centres.