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Business discussed key issues with the Ministry of Economy and the Servant of the People Party

07/ 02/ 2022
    Today, the European Business Association met with Yulia Svyrydenko, the First Deputy Prime Minister of Ukraine – Minister of Economy of Ukraine, Taras Kachka, Deputy Minister of Economy, and Olena Shuliak, the Chairperson of the Servant of the People Party. Yulia Svyrydenko started the meeting with the Governments’ priorities for the economic development of Ukraine this year. Thus, we talked about the importance of GDP growth. Also, the Minister announced the pilot projects on thermal modernization of old buildings (a total of 5,000 per year), affordable mortgage of 5% (excluding %), irrigation projects (Odesa and Mykolaiv region) – to increase land fertility, stimulate shipbuilding, and engineering, increase exports and access to export credits. There will be also the continuation of the lending program 5-7-9%, the continuation of privatization and corporate reform - because it is important to reduce the public sector of the economy and the separation of state from government. Surely, a business raises questions about the geopolitical situation. Thus, Ms. Svyrydenko stressed that according to the Ministry of Defense, the situation is better than in spring 2021. Therefore, the baseline scenario is a peaceful settlement of all tensions. Another issue of concern to businesses was the issue of taxes and fiscal pressure. Thus, it is important to reduce the burden on the payroll, not just regroup taxes. We also mentioned the abolition of taxation of deposits and settlement of life insurance taxation. The next aspect is to establish the partnership between the State Tax Service and business, their relations shall contain no pressure. Another aspect is the scheduled tax audits because currently business does not fully see their sense as unscheduled audits and others still exist (so the proposal is to abolish the scheduled tax audits), and so on. Regarding the shadow economy, there was a discussion of the importance of regulating e-commerce so that counterfeit and illegal products could not be sold on the Internet. Also, fiscalization is currently a hot topic, so, according to the banking sector, this month private entrepreneurs started a mass return of RSO terminals. Therefore, this issue needs additional attention from the authorities, and it was agreed to hold a separate meeting with the participation of the EBA representatives and the Ministry of Economy. In the context of the updated Labor Code, the leaders of the Ministry of Economy and the party unanimously stated that the country needs updated legislation because modern norms are a movement towards European standards. The dialogue also touched on industrial inquiries, such as the free trade area with Turkey (the agreement will soon be published will enter into force probably next year after consideration in both parliaments), the issue of drug registration, and so on. It was agreed to hold a range of sectoral meetings, for example, on the GMP certification between the EBA Health Committee and the Ministry of Health of Ukraine, etc. Separately, the community will hand over cases of individual appeals from companies to the Ministry of Economy and the Servant of the People party. And in all these areas we will very much hope for the continuation of the dialogue. On behalf of the European Business Association, we truly thank Yulia Svyrydenko, Olena Shuliak, and Taras Kachka for the dialogue and willingness to cooperate with business. We hope to have such discussions on a regular basis.   Be the first to learn about the latest EBA news with our Telegram-channel – EBAUkraine.

 

Today, the European Business Association met with Yulia Svyrydenko, the First Deputy Prime Minister of Ukraine – Minister of Economy of Ukraine, Taras Kachka, Deputy Minister of Economy, and Olena Shuliak, the Chairperson of the Servant of the People Party.

Yulia Svyrydenko started the meeting with the Governments’ priorities for the economic development of Ukraine this year. Thus, we talked about the importance of GDP growth. Also, the Minister announced the pilot projects on thermal modernization of old buildings (a total of 5,000 per year), affordable mortgage of 5% (excluding %), irrigation projects (Odesa and Mykolaiv region) – to increase land fertility, stimulate shipbuilding, and engineering, increase exports and access to export credits. There will be also the continuation of the lending program 5-7-9%, the continuation of privatization and corporate reform – because it is important to reduce the public sector of the economy and the separation of state from government.

Surely, a business raises questions about the geopolitical situation. Thus, Ms. Svyrydenko stressed that according to the Ministry of Defense, the situation is better than in spring 2021. Therefore, the baseline scenario is a peaceful settlement of all tensions.

Another issue of concern to businesses was the issue of taxes and fiscal pressure. Thus, it is important to reduce the burden on the payroll, not just regroup taxes. We also mentioned the abolition of taxation of deposits and settlement of life insurance taxation. The next aspect is to establish the partnership between the State Tax Service and business, their relations shall contain no pressure. Another aspect is the scheduled tax audits because currently business does not fully see their sense as unscheduled audits and others still exist (so the proposal is to abolish the scheduled tax audits), and so on.

Regarding the shadow economy, there was a discussion of the importance of regulating e-commerce so that counterfeit and illegal products could not be sold on the Internet. Also, fiscalization is currently a hot topic, so, according to the banking sector, this month private entrepreneurs started a mass return of RSO terminals. Therefore, this issue needs additional attention from the authorities, and it was agreed to hold a separate meeting with the participation of the EBA representatives and the Ministry of Economy.

In the context of the updated Labor Code, the leaders of the Ministry of Economy and the party unanimously stated that the country needs updated legislation because modern norms are a movement towards European standards.

The dialogue also touched on industrial inquiries, such as the free trade area with Turkey (the agreement will soon be published will enter into force probably next year after consideration in both parliaments), the issue of drug registration, and so on.

It was agreed to hold a range of sectoral meetings, for example, on the GMP certification between the EBA Health Committee and the Ministry of Health of Ukraine, etc. Separately, the community will hand over cases of individual appeals from companies to the Ministry of Economy and the Servant of the People party. And in all these areas we will very much hope for the continuation of the dialogue.

On behalf of the European Business Association, we truly thank Yulia Svyrydenko, Olena Shuliak, and Taras Kachka for the dialogue and willingness to cooperate with business. We hope to have such discussions on a regular basis.

 

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

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