Ukraine's government splits State Fiscal Service into tax and customs agencies

Competitions to select heads of the newly created services will be held within three months after the approval of the Cabinet's resolution.

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The Cabinet of Ministers, Ukraine's government, has approved a revised resolution on the reorganization of the State Fiscal Service (SFS) into the State Tax Service and the State Customs Service.

The decision was taken at a government meeting on Tuesday, according to the Finance Ministry's press service.

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Under the resolution, the SFS will be split into the State Tax Service with tax police units and the State Customs Service, and the two agencies will operate as separate central bodies of executive power.

The Cabinet of Ministers will direct and coordinate the activities of the services through the finance minister, and a commission headed by Deputy Finance Minister Sergey Verlanov will be set up for the SFS's reorganization.

"Splitting the SFS into two agencies is an important step toward building a quality tax and fee administration system. The reform of the SFS will create a basis for the demilitarization of tax authorities, an improvement in the quality of services provided to taxpayers, and making tax and customs authorities more transparent," the press service quoted Verlanov as saying.

According to the report, competitions to select heads of the newly created services will be held within three months after the approval of the Cabinet's resolution, which takes into account the recommendations of the International Monetary Fund and the tasks envisaged by the Medium-Term Government Priority Action Plan until 2020.

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