Quasi-taxes paid by Ukrainians

05/ 07/ 2017

Government officials often talk about the investment climate in Ukraine and the need to improve it by simplifying the procedures, however no significant improvement has taken place yet. In the field of consumer appliances and electronics such simplifications may include the cancellation of deductions for a private copy and the abolition of the need to obtain a sanitary and epidemiological expertise conclusion. Not everyone knows that the cost of tablets, phones, TVs and a number of other products includes a fee for the so-called copyright. This is a quasi-tax, a tax that the consumer pays for the opportunity to make a copy of a song using one or another device. These funds are given to the collective management organisations, and are later to be divided between authors. With the development of technology, it is not so important to have this as a service anymore. In addition to that, a lot of questions arise about the accountability of the CMO regarding the collected and distributed funds. Thus, the cancellation of this fee may become a sign for investors that some changes are taking place in Ukraine for the better. Unfortunately, there is little hope for quick legislative changes. Consequently, the manufacturers will have to continue to apply to the State Service of Ukraine on Food Safety and Consumer Protection and go through a chain of unnecessary procedures. While there are such obstacles to business in Ukraine, it is impossible to talk about a favorable business climate or improving the investment attractiveness of the state. Therefore, these issues should perhaps be addressed by the government. Read the full article on Ekonomichna Pravda

Not everyone knows that the cost of tablets, phones, TVs and a number of other products includes a fee for the so-called copyright. This is a quasi-tax, a tax that the consumer pays for the opportunity to make a copy of a song using one or another device. These funds are given to the collective management organisations, and are later to be divided between authors. With the development of technology, it is not so important to have this as a service anymore.

In addition to that, a lot of questions arise about the accountability of the CMO regarding the collected and distributed funds. Thus, the cancellation of this fee may become a sign for investors that some changes are taking place in Ukraine for the better.

Unfortunately, there is little hope for quick legislative changes. Consequently, the manufacturers will have to continue to apply to the State Service of Ukraine on Food Safety and Consumer Protection and go through a chain of unnecessary procedures. While there are such obstacles to business in
Ukraine, it is impossible to talk about a favorable business climate or improving the investment attractiveness of the state. Therefore, these issues should perhaps be addressed by the government.

Read the full article on Ekonomichna Pravda