8 Parliament decisions for the quarantine expected by the business
Due to the introduction of strict quarantine measures and the unprecedented reorganization of most company’s operations, the business asks Verkhovna Rada to take prompt and relevant decisions to support economic activities. So, according to preliminary information, an extraordinary session of the VRU will be held on Saturday, March 28.
Business expects that the Parliament will shortly hold an extraordinary meeting as many important issues have emerged. First, they should raise issues related to cooperation with the IMF, which is particularly critical in the country′s coronavirus situation. Without this help, the country will have to endure the worst hardships. Therefore, in order to reduce the extremely strong pressure on businesses nowadays, caused mainly by the prolongation of the quarantine, we have made 6 more proposals to the Parliament. Thus, we expect the Members of Parliament to consider the interests of tax-paying businesses.
So, in order to raise funds to support the medical system, to overcome the financial and economic consequences of the coronavirus pandemic, Ukraine needs to continue its cooperation with the IMF and international financial institutions. However, in order to have a new IMF program secured, the country needs to fulfill two remained conditions – to adopt a law on the impossibility of returning banks (nationalized or liquidated) to the former owners and the law on the land market.
Also, the business does not recommend the authorities to take rash decisions that can further destabilize the situation, however, it urges them to address some of the issues regarding taxation, audits, social payments, in order to distribute the extra economic burden evenly between companies and the state, as it was done in the majority of developed countries. Therefore, the EBA experts suggest the following:
- to cancel the penalties for violating the rules of fuel and ethyl spirit accounting, as well as for violating the terms of accrual, declaration, and payment of VAT, excise tax and rent for the period up to May 31, 2020;
- to suspend for the period of moratorium all procedural terms appealing against decisions of the controlling authorities, both administratively and judicially;
- to consider the possibility of reducing the personal income tax. The reduction of the tax burden on wages will refrain the employer from staffing cut;
- to introduce temporary disability benefits for workers paid from the Social Security Fund from the first day of sickness;
- to exempt insurance payments implied by the voluntary medical insurance agreements for workers from personal income tax and military levies;
- to abolish the deposit income tax for both physical and legal entities.
These temporary measures can help many businesses stay afloat and retain jobs for their employees, which is critical to the country’s healthy economic growth and the welfare of its citizens.
We hope that together we will manage to overcome the crisis with minimal losses, but for this, it is essential to ensure continuous cooperation and dialogue between the business and authorities. Therefore, the business community asks the authorities to participate in a dialogue!