Due to the armed invasion of the Russian Federation into Ukraine and the shutdown of part of the country’s economy, a decrease in the welfare and purchasing power of the population is expected, due to which, in particular, consumers of high-mountain water will switch to cheaper bottled water, while consumers of bottled water will mainly switch to filtered tap water.
Dmitry Nikiforov, the owner and founder of AT Market LLC (Kyiv), engaged in bottling high-mountain Carpathian water under the trademarks Voda UA, Goryanka, Karpatska Vysokogyrna, told Interfax-Ukraine about the inevitable narrowing and decline of the water market.
“Narrowing and shrinking of the market will occur, because we objectively understand that the well-being and purchasing power of people are declining, and the consumer will save as much as possible on all consumer goods,” he said.
“A priori, our water cannot be cheap. This is Carpathian water, which, by definition, will be more expensive than all the others, thanks to the logistics and complexity of its production. We work in the “medium plus” segment, and it will sag significantly. This is inevitable,” stated Nikiforov.
As reported with reference to the new forecast of the European Bank for Reconstruction and Development, the fall in Ukraine’s GDP in 2022 will be 30%. If large-scale efforts of the world community to restore the country’s economy take place, next year its economy is expected to grow by 25%. In March, the EBRD estimated this decline at 20% with an increase of 23% in 2023.
Top 20 countries Ukraine has posted the highest surplus of trade in 2021 (thsd USD)
SSC of Ukraine
The state should immediately stop the practice of registering tax invoices in Ukraine, including the assessment of criteria for classifying enterprises as those with risky activities, and also replacing value added tax (VAT) with a tax on withdrawn capital.
Dmytro Nikiforov, the owner and founder of AT Market LLC (Kyiv), which is engaged in bottling high-mountainous Carpathian water under the trademarks Voda UA, Goryanka, Karpatska Dzherelna Vysokohirna, expressed such an opinion in an interview with the Interfax-Ukraine agency.
At the same time, he believes that the rate of taxes levied in the country is feasible for business and does not need to be reduced.
“We need to immediately kill this ‘hydra,’ which is called the registration of tax invoices. This is the tool by which thieving tax officials and MP who back them ‘wash out’ the turnover from businesses in the amount of VAT. The state must immediately stop the practice of registering tax invoices, which does not exist anywhere in the world,” Nikiforov said.
According to him, the practice of registering tax invoices and the procedure for determining the criteria for classifying the activities of enterprises as risky harm business, washing out its working capital, and should be stopped immediately.
“There is no need to lower taxes, they are feasible. By and large, VAT should be abolished in principle, and a clear and understandable turnover tax and non-refundable sales tax should be introduced. Because any refundable tax like VAT is a so-called square tax and creates corruption risks, but such people control this issue that it is impossible to move it,” the businessman specified.
“Therefore, the abolition of VAT and income tax with a replacement for a tax on withdrawn capital is what the state should do for business. Without this, business will not be cured, no matter how it is stuffed with loans. All funding is broken down by the fact that in the existing paradigm it simply cannot work,” Nikiforov added.
As reported, Finance Minister Serhiy Marchenko supports restoring the VAT administration system with automatic cash reimbursement, “even if it is painful and requires payment deferral.”
“For some reason, decisions were made that actually broke the current system of registering tax invoices, checking risks and automatic budgetary VAT refunds. In fact, since March, our system for registering tax invoices has not been working … I am a supporter of the system of automatic VAT refunds working, and business receiving funds,” he said in an interview with Interfax-Ukraine.
On February 28, the Cabinet of Ministers of Ukraine established the possibility of automatic registration of tax invoices for certain types of agribusiness and food industry enterprises, which will allow them to submit documentation without bureaucratic delays.
According to Roman Leschenko, who at that time was the Minister of Agrarian Policy and Food of Ukraine, after February 28, tax invoices of legal entities growing crops, farm animals and poultry, engaged in fishing, and processing milk, butter and cottage cheese are automatically registered.
In addition, the list includes all enterprises producing meat, fruit and vegetable juices, vegetable oil, animal fats, edible fats; products of the flour-grinding industry; bread and bakery products, flour confectionery, cakes and pastries; cocoa, chocolate, sugar confectionery; tea and coffee; spices and seasonings; prepared food and dishes; baby and dietary food; prepared feed for animals kept on farms; soft drinks and other bottled waters.
The German Embassy in Ukraine has resumed work in Kyiv.
“We are back! Yesterday, the German Embassy resumed its work in Kyiv. Foreign Minister Annalena Burbock raised the German flag in front of the Embassy building,” the Embassy said on Twitter on Wednesday.
About a hundred Ukrainian schoolchildren will take part in the World Gymnasium 2022 in Normandy (France) from May 14 to 22, said Minister of Education and Science Serhiy Shkarlet.
“Strong in spirit and true to the call of the heart, Ukrainian schoolchildren went to France to participate in the World Gymnasium-2022. This is the largest international multi-sport and educational event for schoolchildren aged 16-18,” Shkarlet wrote in the Telegram channel.
According to him, from 14 to 22 May in Normandy (France) 3.5 thousand participants from more than 70 countries of the world will represent their countries, and 20 sports will be included in the competition program.
“Despite the difficult times in Ukraine, our talented students will take part in priority international competitions. The Ukrainian team will be represented by about a hundred athletes from 17 sports,” the minister wrote.
The government is working to ensure that fuel is available in sufficient quantity and at the same time its price remains adequate to current realities, Prime Minister Denys Shmyhal said.
“Everyone understands that there are objective reasons for this situation (fuel shortage): Russia is purposefully destroying reserves and processing capabilities in Ukraine. Therefore, the team of the Ministry of Economy is working 24/7 to overcome the shortage for all consumers,” Shmyhal said at a meeting of the Cabinet of Ministers in Tuesday.
According to the prime minister, the authorities are simplifying the delivery of fuel to Ukraine as much as possible, expanding the geography of obtaining such fuel.
“In particular, we are talking about the import of fuel from the Persian Gulf countries, from Azerbaijan, from the Middle East. By decision of the government, we are agreeing on the regulations necessary for this today. We are working to ensure that fuel appears in sufficient quantities, while its price remains adequate to current realities,” – stressed the prime minister.
