Personnel Purges in the STS Excise Unit: What Lies Behind the Dismissal of the Department Head

Personnel changes regarding excise policy have taken place in the State Tax Service of Ukraine, which, according to investigative journalist Yevhen Plynskyi, are linked to the failure of October budget revenues. This is reported by RBC-Ukraine with reference to a publication on the Telegram channel 'Dirty Games'. According to Plynskyi, Acting Head of the STS Yuriy Konyushenko signed an order dismissing the Director of the Department of Control over Excise Goods, Khrystyna Bozhenko, by mutual agreement, and the decision was coordinated with the Ministry of Finance of Ukraine.

Personnel Reshuffle in the Excise Unit

According to the journalist, along with Bozhenko, another official working in risk management is leaving the department. Plynskyi links these personnel changes to unsatisfactory excise tax collection results for October 2026, as well as government plans to intensify the fight against the illicit turnover of excisable products — primarily tobacco and alcohol. According to him, the Cabinet of Ministers intends to step up work on eliminating tax evasion schemes and de-shadowing markets, and these issues, the journalist notes, are discussed at regular meetings involving the Prime Minister, law enforcement agencies, and members of parliament.

Failure of October Revenues: The Figures

October 2026 became a failure in terms of budget revenues: the excise tax plan was underperformed by UAH 7.1 billion, which is 40% of the monthly plan, and VAT by UAH 11.7 billion, or 32%. The largest underperformance in excise duty was recorded in the tobacco market — UAH 3.8 billion, or 32.4%. Chairman of the Verkhovna Rada Committee on Finance, Tax and Customs Policy Danylo Hetmantsev commented on these figures as follows: 'This is not a “technical deviation”, but a diagnosis. Systematic work on de-shadowing should have yielded results primarily in VAT and excise, and it is precisely here that it has failed.'

Shadow Market and Record Budget Losses

Market research also confirms the scale of the problem. According to a study by Kantar Ukraine, in July the share of illicit products in the cigarette market was 21.6% (in April 2026 — 19.8%), while the electronic vape market, according to researchers, is completely in the shadows. This is the worst indicator in the last two years. The expected annual losses of the state budget from the illegal cigarette market, according to Kantar Ukraine calculations, amount to a record UAH 36.4 billion.

Authorities' Reaction: De-Shadowing Priorities

In October, chaired by Prime Minister of Ukraine Serhiy Koretskyi and Minister of Finance Serhiy Marchenko, a meeting of the Interdepartmental Working Group on Economic De-Shadowing took place, where the composition of the group was updated and key priorities were determined. Following the meeting, the Head of the Government noted that the government's priority measures include working on the taxation of electronic cigarettes and liquids for them, combating smuggling, and eliminating tax evasion schemes. Earlier in Ukraine, it was also proposed to increase fines for the illegal sale of electronic cigarette liquids to UAH 250,000 for more effective combat against the shadow market.