15 draft laws from the business, important for adoption at the 10th session of the Verkhovna Rada

06/ 02/ 2019

The 10th session of the Verkhovna Rada of Ukraine of the 8th convocation has begun. European Business Association appeals to MPs to call for 15 important initiatives during this session.

Anna Derevyanko the Executive Director of the European Business Association
The country entered the pre-election period. Of course, it is not easy for everyone. Nevertheless, life does not stop. During the last year, there has been a series of positive developments that are noticeable for business. For example, currency liberalization, stabilization of inflation, development of electronic services. However, it is important not to slow down the pace. We should continue working on creating macroeconomic stability, fair conditions and a fair playing field, which are incredibly important for the effective operation of the business. And these 15 draft laws will help gradually implement these rules in life.

Thus, attracting investments and uniform development of the energy industry will be facilitated by the introduction of auctions for the sale of electricity from renewable sources (the draft law No. 8449-d).

In the tax area, state regulation is moving towards the electronization and widespread launch of electronic services. Last year, there were carried out the first attempts to abolish the rudimentary norm for cash discipline; the obligation to keep the accounting book (OPO) has been abolished. At the same time, the draconian fines associated with its accounting and non-trading cash remained. However, for efficiency it is important to make all changes in an integrated fashion: to cancel not only outdated norms, but also fines for their maintenance. For this to happen, the draft law No. 9451 needs to receive operational support from the Verkhovna Rada.

In the context of the introduction of a fair playing field, it is important to mention the reimbursement of old sums of VAT, which has been accumulating since February 1, 2016.  And the draft law No. 7518 will help to resolve the issue of returning these debts and unlock the Temporary Register.

In civilized and democratic European countries, the one who works has the opportunity to freely choose a bank to receive services and salaries. Moreover, transparent business supports the implementation of this initiative and calls for the adoption of the draft law No. 2287a.

The issue of customs clearance of goods are important for legal business in export-import operations. Accelerating this process, along with the introducing a single-window system, will help to establish the mechanism of the authorized economic operator by adopting the draft law No. 4743.

In addition, business has repeatedly spoken up about the development of infrastructure and the attraction of private investments to the industry. One of the most common forms of public-private partnership in the world is concessions. Business calls for adoption of the draft law No. 8125 “On concessions”. It covers a large number of areas, but one of the key areas of application is infrastructure, which includes seaports. And in order for the law to lead to positive developments in many sectors of the economy, which both business and state expect, it is very important to take into account the relevant suggestions and observations of the European Business Association.

A significant amount of cash in circulation impedes economic growth, reduces transparency and delays the active development of modern services and technologies.  In addition to the common ways of receiving cashless payments – POS terminal + credit card – it is important to use alternative technologies as well: payments using QR codes, payments through Internet banking, mobile applications, online services, etc. Simplifying the use of cash registers for cashless transactions will come to be with the passing of the draft law No. 4658.

One should pay special attention to the agricultural sector, where Ukraine has great potential for development. For example, the field of crop protection products (CPP), whose legislation needs to be updated. And in order to increase the crop capacity, quality and safety of agricultural products, priority should be given to the innovative CPP. However, today such samples are very difficult to import into the country, and sometimes downright impossible.  The issue can be solved with the adoption of the draft law No. 6606.

Inefficiently regulated e-commerce is something that badly affects legal business. In order to address this issue, first of all, it is necessary to introduce a clear identification of a particular seller of goods on the Internet in order to improve and protect the rights of consumers and reduce the volume of sales of contraband and counterfeit products (the draft law No. 6754).

At the same time, the focus should be on identifying products that are unsafe for consumers and on inspecting the business that sells goods that are not intended for the Ukrainian market. That is, those without corresponding declarations, markings, instructions, guarantees, etc. However, one should not engage in inspections and prosecutions for ambiguous violations. For example, in the part of the labeling with the National Sign of Conformity: for the absence of a shamrock/trefoil directly on the product itself or for a slight deformation of the sign. The draft law No. 5450-1 will help with reducing corruption risks.

And, of course, it is important to continue to adapt Ukrainian legislation to the EU legislation by adopting the draft law No. 6235. It is integral for signing a new agreement with EU and for facilitating non-tariff barriers to trade. For example, mutual recognition of the marking and conformity assessment.

An important aspect is the continued reform of the healthcare sector. There is a need for harmonization of legislative norms on the type of insurance contract to be concluded by the sponsor of a clinical study before the start of such a study, and the inclusion of this type of insurance in the list of the mandatory ones (the draft law No. 4036). This will help regulate sponsor liability insurance while conducting clinical trials in Ukraine.

A separate issue is to ensure the principles of procedural justice and an increase in the efficiency of proceedings in cases of violation of the legislation on the protection of economic competition (the draft law No. 6746). In particular, in terms of consolidating the rights of persons involved in cases considered by the Antimonopoly Committee of Ukraine, there should be guarantees of these rights, as well as establishment of the mechanisms needed for their implementation. This will help prevent unwarranted interference with the freedom of entrepreneurship in Ukraine.

Labour Code (th draft law No. 1658) will bring the long-awaited change and evolution in Ukrainian labor legislation. Thus, the draft Code provides for the implementation of more flexible forms of accounting and planning of working time, limiting the role of trade unions in certain aspects, for example, in the dismissal of the employee in the event of a retrenchment or because of lack of qualifications and in cases of overtime work. It will also lead to the introduction of the use of technical means of control over the work process, for example, video recording, etc.

At the same time, it is worth seconding the legislative initiative (the draft law No. 7529) aimed at simplifying the conditions of employment of foreigners. It concerns improving the existing mechanism for registration and extension of permits for the employment of foreigners and stateless persons. In addition, it will help the regulation of the procedures for appealing decisions of regional employment centers, etc. It is precisely these substantive and pointed changes in the legislation that will enable the improvement of the investment image of Ukraine in the eyes of the foreigners.

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