Business news from Ukraine

Business news from Ukraine

Cabinet of Ministers has amended procedure for granting grants for establishment of horticulture, berry growing and viticulture

The Cabinet of Ministers has amended the procedure for providing grants for the establishment of horticulture, berry and viticulture, as well as the development of greenhouse farming, which are aimed at the recovery of the grape and wine industry, the Ministry of Agrarian Policy and Food reported.

“Viticulture is a key industry that is now in stagnation. Therefore, realizing these conditions, we have updated the grant procedure. The changes will help winemakers integrate into the grape vertical. They will be able to use the grants to plant their own vineyards. We have also eliminated the mandatory requirement to install irrigation systems and water intake for grapes,” – commented on the Government Resolution No. 871 adopted by the Acting Minister of Agrarian Policy and Food Taras Vysotskyi.

According to his information, the order of granting grants for the establishment of horticulture, berry growing and viticulture presents an expanded list of regions for growing stone fruit species. The total area for planting peach, apricot, sea buckthorn, raspberry, currant, gooseberry, blackberry, currant has been increased at the expense of reducing the total area of planting under pigeonpea and blueberry. The document also clarifies the period during which a garden grant recipient is required to create an appropriate number of seasonal jobs. In addition, the requirement to install an irrigation system and water intake for grapes has been eliminated.

The decree expands the range of potential recipients of grants for orchards and greenhouses. They can be agrarians who are located and carry out economic activities in the territories of active hostilities, where the state electronic information resources are functioning, produce (without adding alcohol) and / or sale of wine grapes, fruit and berry, honey drinks.

The decree shall come into force from the date of its publication.

 

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Cabinet of Ministers may reduce threshold for duty-free parcels by more than 3 times

The Cabinet of Ministers of Ukraine in the bill on raising taxes by 138.7 billion hryvnias this year, among other things, proposes to reduce the threshold of duty-free import of parcels from abroad from EUR150 to EUR45, the Finance Ministry said on Thursday. According to the explanatory note to the bill, goods whose total invoice value does not exceed the equivalent of EUR45 for one recipient will not be taxed, compared to the current norm of EUR150.

It is noted that the goods must be transferred without any payment, intended for personal or family use, and their characteristics and quantity must not indicate that they are imported for any commercial purpose.

At the same time, the above criteria do not apply to excisable goods, perfume in the volume of more than 50 ml or toilet water in the volume of more than 0.25 liters or eight ounces, coffee in the volume of more than 0.5 kg or coffee extracts and essences in the volume of more than 200 g; tea in the volume of more than 100 g or tea extracts and essences in the volume of more than 40 g. If when imported into the customs territory of Ukraine the volume of the above-mentioned goods exceeds the specified, the duty-free threshold does not apply to them.

According to the table published by the head of the parliamentary committee on finance, tax and customs policy Daniil Hetmantsev, the expected additional revenues from the reduction of duty-free threshold for import of goods from abroad will amount to UAH 3.3 billion this year and UAH 8 billion next year.

https://interfax.com.ua/

 

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Cabinet of Ministers has exempted number of goods from VAT for period of martial law

The Cabinet of Ministers of Ukraine for the period of martial law has exempted from VAT operations on the supply of components for vehicles (including special and specialized), as well as fuel and lubricants for security and defense forces, said the Cabinet’s representative in the Verkhovna Rada Taras Melnychuk following a government meeting on Thursday.

The government’s decision is enshrined through amendments to the government resolution from March 2, 2022 N178 “Some issues of imposition of value added tax at a zero rate during martial law”.

“It is established that until the termination or abolition of martial law, operations on the supply of goods (spare parts, batteries, car tires, coolants, components, additional equipment, etc.) for vehicles (including special, specialized vehicles), as well as fuel and lubricants … are subject to value added tax at a zero rate,” Melnychuk wrote in Telegram.

https://interfax.com.ua/

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Cabinet of Ministers plans to approve SME recovery strategy

The Cabinet of Ministers of Ukraine tentatively in early July this year may approve the Strategy for Recovery of Small and Medium Entrepreneurship (SME) until 2027, Deputy Economy Minister Oleksiy Sobolev said.

“About three weeks are left before it (the Strategy – IF-U) will be approved. Consultations are going on now. We have implemented a lot of wishes (of international partners – IF-U) into the Strategy, and SME recovery is not just a government effort – it is a joint effort. We can create one document for everyone with a list of priorities, ideas for coordination, and the next phase is to create an alliance of SMEs from different countries to implement the strategy. And one of the tools is the EDF (Entrepreneurship Development Fund),” he said on the sidelines of the Ukraine Recovery Conference (URC2024) in Berlin on Wednesday.

The Deputy Minister of Economy noted that about 100 measures are planned within the framework of the Strategy implementation, which include tools such as business grants, tools of training programs, search for partners for enterprises, risk insurance.

“EUR8 billion of financing is planned for the next years, and this is realistic – if you look at the programs of partners in the SME Alliance, it is almost the same level,” Sobolev said.

He reminded that as a result of the Strategy’s implementation, the share of SMEs in total value added will increase to 75% by 2027 (from 70% in 2020), and “many new microbusinesses (with more than two employees) will be created.”

When asked what international assistance Ukraine needs first of all to implement the Strategy, Sobolev said that first of all access to financing is needed, as well as technical assistance.

“Some of the measures are innovative for us, some require additional resources and, of course, we need coordination with partners,” the Deputy Minister emphasized.

As reported, the SME Recovery Strategy until 2027 provides for the improvement of state policy in the field of SME development and support by creating conditions for sustainable development and digital transformation, facilitating access to finance, supporting the growth of SMEs in domestic and foreign markets.

The draft Strategy includes three strategic directions – recovery, ease of doing business and access to markets; digital transformation and entrepreneurial ecosystem; and access to resources, integration and competitiveness.

 

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Cabinet of Ministers of Ukraine has raised electricity tariff for households by 64% from June 1

The Cabinet of Ministers of Ukraine has set from June 1, 2024 the electricity tariff for the population at the rate of 4.32 UAH/kWh with VAT, which is 64% higher than the current tariff of 2.64 UAH/kWh with VAT.

This was announced by the first deputy head of the energy Committee of the Verkhovna Rada Oleksiy Kucherenko.

“4.32 is a single price. For electric heating – up to 2000 kWh at the old price in the heating period, in the summer as for everyone,” he wrote in his Facebook on Friday.

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Ukrainian government approves creation of pivdenny marine oil terminal

The Cabinet of Ministers of Ukraine has agreed with the proposal of the Ministry of Energy to establish a state-owned enterprise (SOE) Marine Oil Terminal Pivdenny and to include it under the management of the said ministry. This is stated in the Cabinet’s order No. 381-r dated April 30, 2024, “On approval of the creation of SOE Marine Oil Terminal Pivdenny,” published on the government portal.
“The Ministry of Energy, together with NJSC Naftogaz Ukrainy, shall take measures to transfer the objects of the oil distribution and gas distribution system of the marine oil terminal Pivdenny, which are state property and are in the possession of NJSC Ukrtransnafta, to SOE Marine Oil Terminal Pivdenny,” the document says.
A total of 100% of the shares of Ukrtransnafta belong to NJSC Naftogaz Ukrainy.

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