EBA still does not support draft law №5600

20/ 10/ 2021

On October 21, the Verkhovna Rada of Ukraine plans to consider draft law №5600 on balancing budget revenues in the second reading. On October 5, the Parliament supported the consideration of draft law under a special procedure, which provides for a very limited possibility to take into account amendments that were not supported by the Main Committee. It is worth noting that the EBA representatives have repeatedly addressed numerous letters and statements to MPs and public authorities with a request not to support draft law №5600. We also sent appeals on the most critical amendments to be considered during the special procedure. It should be recalled that some business proposals have already been taken into account, such as VAT refunds, PIT on real estate, seizure of property with the worth of uncoordinated tax liabilities, restrictions on the departure of the head of the company in case of tax debt (only by court decision), etc. Thus, we managed to reach some compromise. However, most of the comments from the business were not heard. For example, it is necessary to lift the restriction on carrying forward the losses of previous years, the inadmissibility of limiting the period to appeal against the blockage of tax invoices, the introduction of significant changes without additional transition period in settlement transactions, namely – adding bar code of excise tax stamp (series and number) for alcoholic beverages in the fiscal check, etc. Business emphasizes that the draft law does not take into account the position of the business, ignores the principles of stability, the possibility of long-term planning, and predictability of public policy, and will have a negative impact on honest taxpayers. Therefore, the European Business Association appeals to all MPs not to support draft law №5600. We also draw attention to the fact that it is important to completely exclude tax administration rules that could increase the administrative pressure of the tax service and rules that change tax payment mechanisms. Be the first to learn about the latest EBA news with our Telegram-channel – EBAUkraine.

It is worth noting that the EBA representatives have repeatedly addressed numerous letters and statements to MPs and public authorities with a request not to support draft law №5600. We also sent appeals on the most critical amendments to be considered during the special procedure. It should be recalled that some business proposals have already been taken into account, such as VAT refunds, PIT on real estate, seizure of property with the worth of uncoordinated tax liabilities, restrictions on the departure of the head of the company in case of tax debt (only by court decision), etc. Thus, we managed to reach some compromise. However, most of the comments from the business were not heard. For example, it is necessary to lift the restriction on carrying forward the losses of previous years, the inadmissibility of limiting the period to appeal against the blockage of tax invoices, the introduction of significant changes without additional transition period in settlement transactions, namely – adding bar code of excise tax stamp (series and number) for alcoholic beverages in the fiscal check, etc.

Business emphasizes that the draft law does not take into account the position of the business, ignores the principles of stability, the possibility of long-term planning, and predictability of public policy, and will have a negative impact on honest taxpayers.

Therefore, the European Business Association appeals to all MPs not to support draft law №5600. We also draw attention to the fact that it is important to completely exclude tax administration rules that could increase the administrative pressure of the tax service and rules that change tax payment mechanisms.

Be the first to learn about the latest EBA news with our Telegram-channel – EBAUkraine.