EBA Meeting with the Office of the President of Ukraine

22/ 02/ 2021

On February 19, the EBA representatives had a meeting with the Office of the President of Ukraine, namely with Ms. Yulia Svyrydenko, Deputy Head of the Office, and Mr. Tymofiy Mylovanov, a freelance adviser at the Office of the President of Ukraine. The business community was represented by the heads of the EBA Committees. During the meeting, business representatives highlighted the key problems of industries that need to be addressed with coordinated systemic action. The eradication of the shadow economy is extremely important for the business community. In this context, it is important to pay attention to the need for customs reform, the fight against smuggling, and fiscalization. Preventing the spread of counterfeit goods is a multi-level issue, therefore experts further emphasize the creation of an appropriate analytical body aimed at combating economic crimes. This issue was discussed in view of the recently adopted law on the Bureau of Economic Security, to which special attention is paid by Ukraines foreign partners. Currently, according to the EBA, BES retains the features of a paramilitary law enforcement agency, which in the future may put pressure on the business. Also, the business is concerned that the SBU has not been deprived of its powers in the context of economic crimes, so the EBA asks the officials to pay attention to this, as the business hopes to get an economic think tank, not another law enforcement agency. Another priority is the continuation of tax reform and logical harmonization of all rules of tax legislation. Chaotic tax changes create unnecessary pressure on businesses and misunderstandings between regulators and entrepreneurs. Also, for quite some time now, businesses have highlighted the need to reduce the tax burden on the payroll fund. This issue is especially relevant in the economic crisis and pandemic. In this context, the business expects effective and balanced action by the state and hopes that the pressure on the payroll will only decrease, but not increase. The forthcoming reform of the IT industry, proposed by the Diia.City draft law, is another important topic for discussion. Business representatives note that they have been almost completely removed from the dialogue and deprived of the possibility to offer their vision of the rules of the draft law and IT reform. This approach creates misunderstandings between business and the Ministry of Digital Transformation and jeopardizes the further development of the industry. Thus, the business emphasizes that the provisions, laid down in the Diia.City draft law, do not take into account the lack of a legal framework for the proper functioning of GIG contracts. Therefore, it is important to listen to the representatives of the IT sector and leave the possibility of interaction under FOP contracts. It is the mechanism that has given such a significant impetus to the development of the IT industry in Ukraine, so the possibility of using this format of interaction between employer and employee is a sensitive issue for business. It is important to maintain the current working conditions of the industry and at the same time develop the possibility of working under GIG contracts. We were pleased to see an immediate response from the Office of the President on this issue and to receive assurances from Ms. Svyrydenko that a dialogue between the industry and the Ministry of Digital Transformation will be organized in the near future to resolve all issues. We are also grateful for the discussion of other important sectoral issues related to agriculture, woodworking, ecology and sustainable development, dairy industry. In continuation of our cooperation with the Office of the President, the EBA will identify key areas in which we expect increased attention from the President and assistance in tackling these issues. We thank Ms. Svyrydenko and Mr. Mylovanov for a constructive discussion with the business community and for their willingness to listen to the views of entrepreneurs! Be the first to learn about the latest EBA news with our Telegram-channel – EBAUkraine.

The eradication of the shadow economy is extremely important for the business community. In this context, it is important to pay attention to the need for customs reform, the fight against smuggling, and fiscalization. Preventing the spread of counterfeit goods is a multi-level issue, therefore experts further emphasize the creation of an appropriate analytical body aimed at combating economic crimes. This issue was discussed in view of the recently adopted law on the Bureau of Economic Security, to which special attention is paid by Ukraine’s foreign partners. Currently, according to the EBA, BES retains the features of a paramilitary law enforcement agency, which in the future may put pressure on the business. Also, the business is concerned that the SBU has not been deprived of its powers in the context of economic crimes, so the EBA asks the officials to pay attention to this, as the business hopes to get an economic think tank, not another law enforcement agency.

Another priority is the continuation of tax reform and logical harmonization of all rules of tax legislation. Chaotic tax changes create unnecessary pressure on businesses and misunderstandings between regulators and entrepreneurs. Also, for quite some time now, businesses have highlighted the need to reduce the tax burden on the payroll fund. This issue is especially relevant in the economic crisis and pandemic. In this context, the business expects effective and balanced action by the state and hopes that the pressure on the payroll will only decrease, but not increase.

The forthcoming reform of the IT industry, proposed by the Diia.City draft law, is another important topic for discussion. Business representatives note that they have been almost completely removed from the dialogue and deprived of the possibility to offer their vision of the rules of the draft law and IT reform. This approach creates misunderstandings between business and the Ministry of Digital Transformation and jeopardizes the further development of the industry. Thus, the business emphasizes that the provisions, laid down in the Diia.City draft law, do not take into account the lack of a legal framework for the proper functioning of GIG contracts. Therefore, it is important to listen to the representatives of the IT sector and leave the possibility of interaction under FOP contracts. It is the mechanism that has given such a significant impetus to the development of the IT industry in Ukraine, so the possibility of using this format of interaction between employer and employee is a sensitive issue for business. It is important to maintain the current working conditions of the industry and at the same time develop the possibility of working under GIG contracts.

We were pleased to see an immediate response from the Office of the President on this issue and to receive assurances from Ms. Svyrydenko that a dialogue between the industry and the Ministry of Digital Transformation will be organized in the near future to resolve all issues. We are also grateful for the discussion of other important sectoral issues related to agriculture, woodworking, ecology and sustainable development, dairy industry.

In continuation of our cooperation with the Office of the President, the EBA will identify key areas in which we expect increased attention from the President and assistance in tackling these issues. We thank Ms. Svyrydenko and Mr. Mylovanov for a constructive discussion with the business community and for their willingness to listen to the views of entrepreneurs!

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