Business proposes to revise draft law No. 4142

15/ 08/ 2022

On August 11, the Verkhovna Rada unveiled a comparative table and remarks of the Main Legal Department of the VRU regarding draft law No. 4142 On the Public Health System, which was adopted as a basis in the first reading. At the same time, the amendments that are being prepared for the second reading also concern other provisions regarding the regulation of tobacco products, not discussed in the primary text. We are talking about amendments to certain articles of the laws of Ukraine On amendments to some laws of Ukraine regarding the protection of public health from the harmful effects of tobacco and On state regulation of the production and circulation of ethyl alcohol, cognac, and fruit alcohol, alcoholic beverages and tobacco products. The business community is concerned about a possible violation of the Regulations of the Verkhovna Rada, due to the introduction of changes, proposals, or amendments to the articles of draft laws, which were not mentioned in the text adopted as a basis. After all, draft law No. 4142 did not propose changes to the regulation of tobacco products, namely, we are talking about the 950th committee amendment, which makes changes to the powers of central executive bodies and strengthens the regulation of the industry. Thus, the Main Legal Department of the VRU concluded that draft law No. 4142s provisions are inconsistent with the requirements of the Constitution and laws of Ukraine. As a result, the text of the draft law needs significant substantive and technical-legal revision and submission for repeated second reading. It should be taken into account the fact that today business has to work in extremely difficult conditions of a full-scale war, which led to the physical destruction of production facilities and infrastructure, as well as the temporary occupation of part of the territory of Ukraine. As a result, this caused the destruction of supply chains, reduced supply of goods, increased costs, etc. In such conditions, the tobacco industry remains very vulnerable, as it is already one of the most regulated sectors of the economy. At the same time, the industry is also one of the largest contributors to the state budget and, according to experts, even during the war, for the first half of 2022, it paid UAH 23.2 billion in excise tax to the budget of Ukraine. That is why any changes in the regulation of the industry require a preliminary discussion between the authorities and business. The European Business Association has always acted as an effective and efficient platform for building a constructive dialogue between the state and business. To resolve the controversial issues between the first and second reading, the EBA has already sent a corresponding appeal to the Parliament to withdraw draft law No. 4142 for repeated second reading and to revise it as soon as possible with the involvement of business experts. And we really hope that the voice of the community will be heard!

On August 11, the Verkhovna Rada unveiled a comparative table and remarks of the Main Legal Department of the VRU regarding draft law No. 4142 “On the Public Health System”, which was adopted as a basis in the first reading.

At the same time, the amendments that are being prepared for the second reading also concern other provisions regarding the regulation of tobacco products, not discussed in the primary text. We are talking about amendments to certain articles of the laws of Ukraine “On amendments to some laws of Ukraine regarding the protection of public health from the harmful effects of tobacco” and “On state regulation of the production and circulation of ethyl alcohol, cognac, and fruit alcohol, alcoholic beverages and tobacco products”.

The business community is concerned about a possible violation of the Regulations of the Verkhovna Rada, due to the introduction of changes, proposals, or amendments to the articles of draft laws, which were not mentioned in the text adopted as a basis. After all, draft law No. 4142 did not propose changes to the regulation of tobacco products, namely, we are talking about the 950th committee amendment, which makes changes to the powers of central executive bodies and strengthens the regulation of the industry.

Thus, the Main Legal Department of the VRU concluded that draft law No. 4142’s provisions are inconsistent with the requirements of the Constitution and laws of Ukraine. As a result, the text of the draft law needs significant substantive and technical-legal revision and submission for repeated second reading.

It should be taken into account the fact that today business has to work in extremely difficult conditions of a full-scale war, which led to the physical destruction of production facilities and infrastructure, as well as the temporary occupation of part of the territory of Ukraine. As a result, this caused the destruction of supply chains, reduced supply of goods, increased costs, etc. In such conditions, the tobacco industry remains very vulnerable, as it is already one of the most regulated sectors of the economy. At the same time, the industry is also one of the largest contributors to the state budget and, according to experts, even during the war, for the first half of 2022, it paid UAH 23.2 billion in excise tax to the budget of Ukraine. That is why any changes in the regulation of the industry require a preliminary discussion between the authorities and business.

The European Business Association has always acted as an effective and efficient platform for building a constructive dialogue between the state and business. To resolve the controversial issues between the first and second reading, the EBA has already sent a corresponding appeal to the Parliament to withdraw draft law No. 4142 for repeated second reading and to revise it as soon as possible with the involvement of business experts. And we really hope that the voice of the community will be heard!