KYIV. June 24 (Interfax-Ukraine) – Ukrainian President Petro Poroshenko says that local budget revenues have already grown by 40% in the current year due to budget decentralization.
“We’ve already got the first results of budget decentralization. As of today, we’ve got the first statistics, which show that it’s the financial base of the local budget which has for the time grown by up to 40%, the local budgets have for the first time earned real money,” the president said during a meeting of the National Reforms Council in Kyiv on Tuesday.
According to Poroshenko, initiators of a respective bill were severely criticized back then. “Much anger was released against the initiators of the bill, which was once proposed to the public, [claiming that] it wouldn’t work, calculations were wrong, and these or those interests were not taken into consideration! But it’s exactly the opposite,” he stressed.
KYIV. June 23 (Interfax-Ukraine) – State enterprise Ukrspyrt plans to export 2 million decaliters of ethyl spirit by late 2015.
“We have very ambitious plans on exports. Preliminarily we have contracts for almost 2 million decaliters, and this would allow [for] launching four or five more distilleries,” acting director of Ukrspyrt Roman Ivaniuk said at a press conference in Kyiv on Monday.
He said Ukrspyrt is focusing on the use of the annual quota for duty-free imports of spirit to the EU.
He said that at present, over 14 out of the 41 Ukrspyrt distilleries are operating. It is planned that with the start of wine-making season, demand for Ukrspyrt’s products will grow, which will load more enterprises.
“At the best of times Ukrspyrt exported 10 million decaliters. I think that in 2016 we should orient to this figure,” he said.
Ukrspyrt is managed by the Ministry of Agricultural Policy and Food. Last year Ukrspyrt distilleries manufactured about 15 million decaliters of alcohol, the entire volume was sold in the domestic market.
KYIV. June 23 (Interfax-Ukraine) – The National Commission for Communications Regulation (NCCR) has asked international companies to draw up a road map to introduce the LTE (4G) communications standard in Ukraine, Commission Head Oleksandr Zhyvotovsky has said.
He said the working group for 4G which was created in August 2014 has defined several ranges which can be used for 4G commercial services – 800 MHz, 900 MHz, 1800 MHz, 2300 MHz and 2500 MHz.
“A stocktaking of the whole radio frequency spectrum should be made to understand where commercial operators work, where special users work and how long would they work and if the conversion is required,” Zhyvotovsky said.
“Jointly with the operators we have formed the core tasks and drew up a draft work sheet for conducting studies. We’ve sent requests to ten leading international consulting companies specializing in telecommunications and having experience of the realization of the re-farming projects in various countries, including Europe. We received feedbacks from six companies, and after more consultations we’ve formed a portfolio of three offers from famous British companies with the descriptions of work, their volume and the probable cost,” he said.
“To avoid long discussions of the cost, we should prepare an offer based on forceful arguments. The analysis of the formation of prices on the telecommunications markets of various countries should be taken as a basis. It is to be conducted with the involvement of independent experts. It is clear that the cost of frequency bands in various ranges is different – high frequencies cost less than low frequencies,” he said.
“There are three instruments allowing the launch of new technologies – technical neutrality, re-farming and sale of new frequencies. We should use all the three instruments to ensure equal competitive opportunities for market players,” Zhyvotovsky said.
Commenting on the possible tender, he said that this could be a tender for frequency band packages.
He said the operators are currently studying the materials to prepare offers on the selection of the key provider, cooperation with it and the financing scheme.
“We invite all market players to participate in the project. There are no barriers. However, we understand that in fact it would be four or five companies with ambitions of introducing 4G technology,” he said.
By late 2015, the NCCR plans to finish preparatory consultations and formalize the plans by a cabinet resolution on a presidential decree. Then, agreements with western consultants will be signed and the study will be launched.
KYIV. June 23 (Interfax-Ukraine) – The Air Express National Project to construct a high-speed passenger rail service between Kyiv-Pasazhyrsky railway station and Boryspil International Airport has been transferred to the management of the Infrastructure Ministry of Ukraine.
This is stipulated in cabinet resolution No. 418 of June 17, 2015.
The Air Express national project is funded by China EximBank. The total loan amounts to $372 million. The loan will be issued in two tranches.
The first tranche of $52 million was released in 2013 and was aimed at design and preparatory work. The second tranche of $320 million will be used for the construction of infrastructure.
Acting Deputy Director General for Operations at Boryspil airport Anton Borysiuk said in December 2014 that it was unlikely that the initial stages of the Air Express project would have created high passenger demand.
In April 2015 Infrastructure Minister Andriy Pyvovarsky said that the project is economically unjustifiable.
In June 2015 it was reported that Ukraine and China are willing to discuss the possibility of redirecting loan funds provided for the project.
According to Pyvovarsky, the feasibility of the Air Express project has not been confirmed, therefore the ministry is ready to propose alternative projects that can be funded using Chinese money.
KYIV. June 23 (Interfax-Ukraine) – The automated return of overpaid taxes and the possibility of allocating overpayment for one tax to another tax should become part of tax reform in Ukraine, according to 73% of respondents polled by the American Chamber of Commerce in Ukraine.
The Chamber said that respondents formed concrete proposals on their key expectations from comprehensive tax reform.
Out of those polled, 66% of respondent said specialists of fiscal agencies should have their wages increased and staff should be optimized, combing pecuniary and non-pecuniary incentives. 63% of respondents believe that the quality of tax consultations should be improved. 61% of respondents proposed that the financial responsibility of tax agencies for groundless decisions should be introduced, as well as compensation of court expenses if the court issues a ruling in favor of taxpayers. The introduction of the alternative dispute resolution should also be discussed.
In addition, 58% of respondents said that the fiscal service should be reorganized into a servicing agency, authorizing it with supervision over the observation of tax laws. 50% of respondents said that the electronic declaration of all taxes should be introduced and reporting periods should be extended, as well as report forms being facilitated.
Of those polled, 74% of respondents said that the tax reform should provide for predictability of the tax policy and stability of tax laws. 73% of respondents believe that the requirements of tax laws should be watertight. 63% of respondents support the observation of a clear procedure for drawing up new tax laws, and 53% of them said that the administrative and fiscal burden on taxpayers should be registered via public presentation of the model at the stage of its discussion.
The key remarks of business to taxes foreseen in the current tax system first concern value added tax (VAT, 84% of respondents), company profit tax (60% of respondents) and single social security tax (58% of respondents).
“Most of respondents believe that first the administration of taxes should be relaxed, taking into account European principles. The electronic services should be introduced and the single social security tax rates should be cut,” the Chamber said.
KYIV. June 22 (Interfax-Ukraine) – Ukraine and Canada will speed up the talks concerning the formation of a free trade area between the two countries.
Ukraine’s President Petro Poroshenko and Canada’s Prime Minister Stephen Harper discussed the issues of bilateral cooperation during a phone conversation, and agreed to speed up the process of negotiations on the formation of a free trade area, the Ukrainian president’s press service reported.
“Petro Poroshenko and Stephen Harper emphasized that the establishment of the FTA between Ukraine and Canada would become a positive signal for investors and business in the two countries, as well as enhance bilateral relations,” the statement reads.
According to the report, Harper praised the efforts of the Ukrainian authorities and Poroshenko in particular on the path to the reformation of Ukraine. “The prime minister of Canada has assured of his willingness to assist in mobilizing international political and economic support for Ukraine,” the press service said.
Poroshenko thanked Harper for his visit to Ukraine ahead of the G7 Summit. “It was a successful and symbolic visit, which demonstrated solidarity of Canada and the international community with Ukraine,” the head of state noted.
The Ukrainian president informed the Canadian premier about the results of the meeting with the Ukrainian support group, which was established under the G7 leaders declaration, at the level of ambassadors and diplomatic representatives.
