The Ministry of Finance of Ukraine has supported the proposal of the Association “Insurance Business” (ASB) and the League of Insurance Organizations of Ukraine (LIOU) on the inadmissibility of VAT taxation of commission remuneration of insurance agents, according to the press release of the ASB.
It is specified that the norm on VAT taxation was contained in the draft law of Ukraine “On Amendments to the Tax Code of Ukraine to improve the taxation of insurance activities in Ukraine”.
As reported, both associations jointly appealed to the Ministry of Finance, the Ministry of Economy, the State Regulatory Service, the National Bank with a request not to worsen the tax conditions of insurance business and not to violate the requirements of the EU Directive.
“Ukraine is moving to the EU, so we must check all tax innovations both with common economic sense and with the principles and norms in force in the European Union,” says Vyacheslav Chernyakhovsky, general director of the Insurance Business Association.
At the same time, the press release specifies that the imposition of VAT on commissions of insurance agents directly contradicts the EU Council Directive No. 2006/112/EC of November 28, 2006 “On the Common System of Value Added Tax”. Article 135 “Exemption from taxation of other activities”, which expressly stipulate that “Member States shall exempt from taxation … insurance and reinsurance operations, including related services provided by insurance brokers and insurance agents.
The report also notes that to substantiate their position, insurance associations have analyzed the performance of insurers of Ukraine for the first nine months of 2023 and conducted a representative survey of market participants. According to the results of which it became clear that the state would not receive economic effect from this innovation, and on the contrary, there would be unpredictable additional costs for administration, control and monitoring of VAT operations in insurance activities.
“According to our estimates, our proposals, supported by the Ministry of Finance, saved each insurance company at least 40-50 thousand UAH monthly,” – said Chernyakhovsky.
insurance agents, MINISTRY OF FINANCE, TAXATION, VAT, АСБ, ЛСОУ
PJSC Ukrnafta has bought a special license from Chernigovnaftogazgeologiya (a subsidiary of state-owned Nadra Ukrayiny), the company’s director Serhiy Koretskyy said on Facebook.
According to him, thanks to the new license, Ukrnafta will receive an increase in total reserves by 1.01 billion cubic meters of gas and 100,000 tons of oil in 56.5 square kilometers of areas in northeastern Ukraine.
Koretskyy also noted that this is the first special permit obtained by Ukrnafta in the last 14 years.
As reported, Ukrnafta in 2023 increased production of oil with condensate by 3% (by 39.9 thousand tons) compared to 2022 – to 1 million 409.9 thousand tons, gas – by 5.8% (by 60.4 million cubic meters), to 1 billion 97.4 million cubic meters.
The company’s strategic goal is to double its oil and natural gas production to 3 million tons and 2 billion cubic meters respectively by 2027.
“Ukrnafta, Ukraine’s largest oil producer, is the operator of a national network of 537 gas stations, of which 456 are operational. The company is implementing a comprehensive program to revitalize its operations and update the format of its network of gas stations. Since February 2023, Ukrnafta has been issuing its own fuel coupons and NAFTACard, sold to legal entities and individuals through Ukrnafta-Postach LLC.
Ukrnafta’s largest shareholder is Naftogaz of Ukraine with a 50%+1 share stake. On November 5, 2022, the Supreme Commander-in-Chief of the AFU decided to transfer to the state a share of the corporate rights of the company owned by private owners, which is now managed by the Ministry of Defense.
Ukraine has exported 34.862 million tons of grain and leguminous crops since the beginning of the 2023/24 marketing year and as of April 1, of which 5.192 million tons were shipped in March, Deputy Minister of Agrarian Policy and Food of Ukraine for Digital Development, Digital Transformation and Digitalization Denis Bashlyk said in Telegram.
According to the report, in terms of crops, 18.765 million tons of corn, 13.842 million tons of wheat, 1.962 million tons of barley, and 1,000 tons of rye have been exported since the beginning of the current season.
The total export of Ukrainian flour since the beginning of the season as of April 1 is estimated at 79.3 thousand tons, including wheat flour – 75.1 thousand tons.
Gold, which ended trading last Thursday at an all-time high, continues to rise in price on Monday on expectations that the Federal Reserve will soon begin cutting interest rates, MarketWatch writes.
On Friday, stock exchanges in the U.S. and many European countries were closed due to Easter.
Quotes of June contracts for the precious metal were $2238.4 per ounce at the close of trading on New York’s Comex exchange on Thursday. On Monday, it rose 1.7% to $2276.9.
Gold added 8.9% in March and was up 8% for the entire first quarter.
The “unprecedented rally” was triggered by softer-than-expected U.S. inflation data, which reinforced expectations that the Fed could start lowering rates as early as June, IG Senior Market Analyst Sergio Avila said.
The U.S. consumer price index (PCE index) in February rose by 0.3% in February compared to the previous month, the Commerce Department said on Friday. The rise was weaker than analysts’ expectations, who had forecast inflation to remain at January’s 0.4% rate.
Growth in the PCE Core index, which excludes the cost of food and energy, slowed to 0.3% month-on-month last month from 0.5% in January. The dynamics matched the consensus forecast.
Markets estimate the probability of a Fed prime rate cut in June at about 70%, Avila said. And it is expected to be cut by 75 basis points in total over 2024 from its current range of 5.25-5.5% per annum.
“Lower interest rates create a favorable environment for gold, increasing its attractiveness as an investment asset,” the expert added.
“Gold investors are currently acting with the belief that the Fed will choose to cut interest rates regardless of whether inflation reaches its target level or not,” said Stephen Innes, managing partner of SPI Asset Management. Demand is also being driven by the fact that central banks in developing countries are increasing their holdings of the precious metal, he said.
The war in Ukraine has caused more than 4 million people to lose their homes due to destruction from missile attacks and forced displacement from the frontline and occupied territories. Amid these challenges, there is an urgent need for affordable, adaptive and flexible housing.
This is the problem addressed by European Design Upgrade 3.0, an international project aimed at finding and implementing effective solutions and technologies in the development of modular housing for people who have lost their homes. The goal of the project is to rethink modular construction for crisis areas and situations, such as wars, natural disasters, and other adversities.
“The key idea of EDU 3.0 is to bring together architects, engineers, designers, and other stakeholders to create new and effective solutions in the construction of modular buildings. This is an important task and a serious challenge, as modular houses are the key to solving the problem of temporary affordable housing in Ukraine for all those affected by the war,” comments Yuriy Pyvovarov, President of K.Fund, the project’s implementing organization.
The EDU 3.0 program was developed jointly with leading experts from Estonia, Ukraine, and Finland and is based on the principles of human-centered design thinking. In particular, at the opening of the project, experts shared that in modular housing, this approach should take into account comfort, functionality, energy efficiency, and sustainability to meet the needs and experiences of people who have lost their homes. “Our main task is to change the attitude of people in Ukraine to this type of housing, to convey that modular construction is about quality, aesthetics, and energy efficiency, among other things,” adds Olha Batova, EDU 3.0 project mentor.
The project also focuses on solving urgent problems faced by Ukrainian and global modular settlements. Kateryna Tkachuk, an EDU 2.0 finalist and speaker of this year’s project, spoke about the most important ones:
1. Lack of personal and common space, as well as rooms specially equipped for cooking and hygiene.
2. Ignoring factors important for a safe and comfortable life, such as non-compliance with fire safety rules or constant dampness and mold.
3. Lack of flexibility and adaptability, which is also an important factor for adjustments for people with disabilities.
The project involves specialists in the field of design, construction and architecture, students and graduates of specialized higher education institutions, as well as entrepreneurs and members of the public. Currently, participants are at the stage of selection for the hackathon to develop new ideas, where they will be able to plan and design their solutions for modular housing in a group work format. Throughout the hackathon, as well as during the development of their own projects, participants will receive ongoing mentoring support, and later, the evaluation and selection of the best projects for awarding at the awards ceremony. The authors of the best concepts will receive additional support and funding to implement their project.
Participation is free of charge. EDU 3.0 is implemented by K.Fund, Brand Manual, UrbanMill, and Ultrahack. The project is funded by the European Union under the Creative Europe program. The project’s media partner is the Interfax-Ukraine news agency.
You can register for the hackathon, which will take place from April 11 to 13, and learn more about the project here: https://edupgrade.design/.
The Cabinet of Ministers of Ukraine has approved the creation of two new industrial parks (IP) – “Dnister” on the territory of Yampol city territorial community of Mogilev-Podolsky district of Vinnytsia region and “Galicia” on the territory of Kalush in Ivano-Frankivsk region.
According to the Ministry of Economy, total investments in the two industrial parks for the next three years should amount to more than UAH 1.5 billion.
Prime Minister of Ukraine Denis Shmygal at a government meeting on March 29 announced the inclusion of the two new parks in the Register of industrial (industrial) parks, and the creation of the State Office for the development of industrial parks.
According to the Ministry of Economy, the concept of IP “Dnister” assumes the creation of 265 jobs in the processing industry on an area of 17.2 hectares.
“It is assumed that the park will specialize in the production of paper and paper products, processing of plant products and other activities compatible with those listed,” the report explains.
In turn, IP “Galicia” will be located on an area of 19.8 hectares and will provide the creation of up to 1000 jobs.
The main directions of activity are determined by the manufacture of construction materials.
On the territory of the park will be created production of building materials from clay, production of cement, lime and gypsum mixtures, as well as manufacturing of products from concrete, gypsum and cement.
According to the Ministry of Economy, the investors plan to start production of machinery and equipment, introduce processing of industrial and household waste, engage in scientific and technical activities, as well as create enterprises that will work with alternative energy and energy conservation.
As reported, the state budget-2024 for the first time provided for the allocation of 1 billion UAH for the development of infrastructure of industrial parks.
CABINET OF MINISTERS, Galicia, INDUSTRIAL PARK, UKRAINE, Дністер
