Capital and smuggling: what does business expect from the 9th session of the Verkhovna Rada

5 key requirements of business to MPs

Капитал и контрабанда: чего бизнес ждет от 9-й сессии Верховной Рады

On Tuesday, September 4, after nearly a two month break, the Verkhovna Rada will gather in the Assembly hall. Traditionally, the autumn session of Parliament will coincide with the peak business season. However, entrepreneurs doubt that the 9th session of the Parliament should wait for the masses breakthrough laws. After all, next year the country will hold presidential and parliamentary elections. So all the coming parliamentary session will be focused on flirting with the electorate.

And yet, business is pinning hopes on the forthcoming session of the Verkhovna Rada. About the most urgent questions of entrepreneurs, UBR.ua interviewed representatives of the business community.

National Bureau of financial security

A new service in theory will replace a cohort of power units looking for order in Finance and taxation.

New monster-checker: how to work Natsbyuro of finetaste

“The Bureau will become a real tool for reducing pressure on the business due to the transfer of the consideration of the financial offences within the jurisdiction of the authority with the analytical, but not the physical methods of investigation”, — told UBR.ua the Deputy head of the VR Committee on financial policy and banking activities of Ruslan Demchak.

Very flattering first spoke about the legislative initiative and business. Largely due to the fact that the new organ will put an end to the history the Tax police, which today no longer exists formally, but in fact continues to function. In addition, we change the principle of operation of the entire system. For example, under the new order it will be impossible to initiate criminal proceedings without proof of actual application of state significant damage or if such loss was timely reimbursed.

Strengthening the fight against smuggling

The Ministry of economic development determines the level of the shadow economy at least 35-40%. Much of this is fueled by contraband flows that enter the country via the black and gray schemes (in the first case the goods are imported without customs documents and payments, the second – on forged documents with the minimum payments). The problem, say the business that the Executive authorities combat smuggling only in the border.

In Ukraine smuggling is growing faster than the economy

“Smuggling in various categories of goods ranges from 10% to 70% and playing in the underground economy a significant role. If the proportion of black and gray imports exceeds the limit, it is obvious that it takes away from the market of civilized business, paying all taxes and fees. If our state is interested to get the white threads and count the money, it is important to establish a process of fiscalization,” commented UBR.ua the Executive Director of the European business Association (EBA) Anna Derevyanko.

In the opinion of the business, the Parliament must prescribe the need for anti-smuggling not only in customs but also in all areas of the country that the goods imported under grey schemes, could not be officially sold on the shelves. Along with the “modernizing” of cash registers with the help of new gadgets, it is “whitewashing” the economy and bring more money to the budget.

Lowering the requirements to Bank capital

Ukrainian law requires newly established banks to have no less than 500 million. of the share capital. The same level will have to reach all the existing financial institutions – they prescribed a phased schedule of capital increase until July 2024.

And although the next stage of increase, the bankers have managed to delay, the General requirement remains relevant. At the same time, financiers are convinced – 500 million UAH. too high a threshold. If not changed, the market still leave 25-30 banks in the world. But, for example, in many European countries the Bank is sufficient to have a registered capital in 5 million Euro, equivalent to about 150 million UAH.

In Ukraine, can reduce the capital requirements for banks

“If a large Bank, it long ago already has the amount of 500 million USD or more, and if the Bank intends to develop actively, he will be forced himself to increase their capitalization. But small banks, which in the region cover 20-30% of the area needed. They serve regional business, they know how to do it. There are financial institutions that only do operations in the stock market. They have no risk with the return of deposits, so they hold the registered capital of 500 million, there is no need,” he said UBR.ua on the need to amend the law, the Executive Director of the Independent Association of banks of Ukraine Olena Korobkova.

By the way, the corresponding bill is registered in Parliament and even approved by the relevant Committee.

A new tax

The bill on the tax on the capital aims to attract foreign investment and will be considered by the Parliament as a priority.

“It involves the use of modern technologies in the field of taxation, which will reduce fraud and will make use of the services of GFS a more comfortable and modern in the interests of Ukrainian business”, — said Ruslan Demchak.

The tax on the capital will come into effect from 1 January 2019

Business relates to this bill with cautious optimism.

“It is a correct law, without it liberalization as such do not fully succeed. Importantly, it is not included, as we have usually done a different kind of “wishlist”. It is important that the law was worthy and took into account best European practice”, — said Elena Korobkova.

In the case of the adoption of this law the tax rate for foreign investors will be 15%, whereas now with fees they can reach 25%.

Budget-2019

A balanced budget is one of the key requirements of the IMF to grant the next tranche. Here, the Parliament will have to try, because to stay on the eve of elections from populism when approving the state budget for 2019 will not be easy.

Today the Verkhovna Rada has adopted the law on the Anticorruption court, which was one of the main requirements of the Fund. However, early to rejoice. Deputies arbitrarily included in the law rules of that Fund has not been agreed in advance, which has already caused criticism from the anti-corruption and Transparency International. At the moment, the IMF experts examine the adopted law on the correspondence designated in the Memorandum obligations and will soon give its verdict. Business would like to power, including in the face of deputies of the Verkhovna Rada, has taken all necessary measures to continue cooperation with the Fund.

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