It looks like an additional import tax

The Ukrainian Union of Industrialists and Entrepreneurs (UUIE), the Anti-Crisis Headquarters for Business Assistance insist on conducting detailed consultations with businesses that have foreign trade operations. In turn, the Cabinet of Ministers is developing a draft law on the introduction of a 10% fee on currency exchange transactions for the purchase of all imported goods and services. This was reported by the UUIE press service.

First of all, the business union is convinced that the mentioned government concept should contain an exception for truly critical imported goods. During the 6 months of war and purposeful destruction of civil and industrial infrastructure by the occupiers, many industrialists lost or had significant equipment damage. Components and raw materials that are not manufactured in Ukraine are needed for repair or replacement.

The second is a social component. Additional duties (which de facto is the introduction of a new fee) will inevitably fall on the shoulders of the final consumer, will lead to an increase in the price of both imported and domestic products. Therefore, in parallel with the increase in fees, it is necessary to think of compensatory mechanisms to curb inflation and support the solvency of citizens. It is predicted that by the end of the year inflation will be at least 35%.

“In general, the initiative on the additional import tax must be substantiated. It is worth recognizing the risks: this is the threat of an increase in gray imports, a non-competitive advantage for businesses that work closely with foreign countries and can use foreign exchange earnings there, a certain increase in the cost of goods for consumers,” the UUIE noted.

To increase revenues to the state budget, the main thing is not to increase fiscal pressure on business, but to create conditions for its activity, strive to keep every working enterprise and workplace.

Earlier, at the insistence of UUIE, the government canceled the list of critical imports, which included many products produced in Ukraine. Therefore, import VAT in July reached UAH 20.2 billion against UAH 11.9 billion in June.

The Cabinet of Ministers intends to develop draft law on the introduction of a 10% fee for the purchase of all imported goods and services.

As GMK Center reported earlier, the volume of value added tax (VAT) refunds in July decreased to UAH 0.6 million compared to UAH 9.5 billion in June.