The issues of tax and customs policy, economic development, changes in the simplified taxation system and the National Revenue Strategy-2030 were discussed by members of the Ukrainian Business Council during an online meeting with People’s Deputy of Ukraine, member of the Committee on Finance, Tax and Customs Policy Halyna Vasylchenko. Heads of business associations, entrepreneurs from different regions of Ukraine took part in the meeting.
Olena Khotenko, a member of the Council of the Association of Taxpayers of Ukraine, proposed a mechanism for promoting the employment of internally displaced persons and solving personnel problems for relocated businesses. The proposal consists in the exemption from withholding personal income tax and social security for one year. Thus, employers will be interested in hiring displaced people, and internally displaced persons themselves will have an incentive to go to work, and not just receive social assistance from the state. We are talking about 3.8 million migrants, aged 18 and older.
The People’s Deputy expressed her willingness to consider the concept and asked how possible risks of abuse were taken into account.
The issue of restarting customs was raised by the first vice-president of the Chamber of Commerce and Industry of Ukraine Mykhailo Nepran. “Bills on restarting customs, the Bureau of Economic Security and the Tax Service traditionally “hang”. We ask you to help implement these draft laws. For our part, we are ready to provide analytics and arguments.”
Halyna Vasylchenko assured that the “Voice” faction supports the adoption of draft laws and called for intensifying public efforts to support the reforms of the customs, tax service and BEB.
The director of the Software Ukraine association, Khrystyna Vengryniak, drew attention to the large number of state and communal enterprises that are not efficient, while such enterprises do not allow private companies to perform work for the budget. Also, the representative of the association proposed to create new IT services with the help of private companies, and not with state funds. Over time, companies could support the functioning of these services. Such a practice would promote the development of IT businesses that create value-added products. “This is part of the public-private partnership, we are in favor of improving the new draft law and enabling private IT companies to cooperate with the state.”
The People’s Deputy assured that she supports the idea of privatization of state-owned enterprises, invited business representatives to submit detailed proposals.
Myroslav Laba expressed concern that the tax service will impose significant fines for small irregularities in fiscal checks.
Halyna Vasylchenko asked to prepare an appeal to the Ministry of Finance and the State Tax Service so that the relevant changes are included in the order.
Also, among the proposals of business associations was the idea of not needing PRO, calculations during remote trade are carried out on a key card tied to the entrepreneur’s bank account. A proposal was discussed that within the framework of finalization of draft law 10166 (special regime for the self-employed) – for entrepreneurs with the lowest income, fixed tax rates should be set by local communities. Such a tax will help bring self-employed entrepreneurs out of the “shadows” and will replenish local budgets.
Commenting on these proposals, the people’s deputy asked to work on this idea with the regions and provide conclusions, as well as send detailed proposals regarding the key card.
Borys Emeldesh, president of the All-Ukrainian Private Association of Entrepreneurs, analyzed the National Income Strategy-2030 and the reform of the simplified taxation system.
“In the reform of the simplified system, the main emphasis is placed on small business, while the analysis proves that the budget bears the main losses from the abuses of large business. It is advisable to deal first with the reform of the general taxation system. The complexity of this system, the opportunities for abuse, lead to the fact that entrepreneurs remain on the simplified system even when turnover increases. There is no motivational bridge that would give entrepreneurs the opportunity to grow,” said the head of the association.
Hanna Strykun, National Platform of Small and Medium-sized Business, expressed the concern of small business representatives regarding the specified document and promised to send proposals from the organization. In the cost-benefit analysis of the Strategy’s proposals, it is necessary not only to talk about the increase in budget revenues, but also to take into account business costs for VAT administration, full commodity accounting, etc.
It is important for people’s deputies to have feedback from business regarding these documents, Galina Vasylchenko emphasized. She expressed her readiness to send a parliamentary request regarding the costs and benefits of the proposed reform.
“It is important to join forces to defend a simplified taxation system, to offer our vision. I understand that it is not easy for the government to find funds during the war, we must count and take into account the opinion of international partners. But negotiators from the Ukrainian side must have and take into account the clear position of Ukrainian business, that there are red lines and that we categorically cannot change. The best option is for businesses to have a single vision regarding a simplified taxation system,” the deputy emphasized.
Davyd Alkhanishvili, Association of Taxpayers of Ukraine, asked three questions to the people’s deputy: about new payment and reduction of the number of vacancies in the field of civil service, about strengthening the fight against corruption and about introducing personal responsibility of officials for unlawful blocking of tax invoices.
Commenting on the settlement of the problem with tax invoices, Halyna Vasylchenko noted that she received many requests from entrepreneurs regarding the blocking of invoices in 2023. The People’s Deputy supported the idea of introducing the responsibility of officials and asked to send relevant developments.
Speaking about the reduction of vacancies in the field of civil service, the people’s deputy emphasized that she supports the reduction of inefficient bodies that do not participate in the defense of the state: “I believe that it is necessary not only to reduce, but also to spend some part of the funds on adequate, market salaries for the relevant civil servants . Because we always want effective solutions. But in order for a quality decision to be made or generated, we need effective managers.”
As a result, the participants of the discussion agreed to exchange additional information on the issues raised, to continue the dialogue on problems that concern business and to jointly implement the discussed projects.