The cost of bread produced by individual entrepreneurs has increased by approximately 25% since the blackout began, and poppy seed rolls by 40% due to the need to maintain generators, purchase fuel, and cover logistics costs, according to Nina Yuzhanina (European Solidarity), a member of the Verkhovna Rada Committee on Finance, Tax and Customs Policy.
She said that she occasionally buys bread outside the city — in small private bakeries that operate as individual entrepreneurs.
“When there is electricity, production is stable and prices are predictable. When there is no electricity, work is done exclusively on generators with constant fuel costs. The result is already noticeable: the cost of bread has increased by about 25%, and poppy seed rolls by almost 40%. The reasons are obvious: fuel, generator maintenance, and logistics disruptions. This is not a question of excess profits — it is an attempt to cover costs and survive,” she wrote on Telegram.
Yuzhanina stressed that with such an increase in prices for bakery products, it will be difficult to maintain sales volumes, as the additional costs will not disappear.
“There are more than 4,000 sole proprietors (groups 1-3) in Ukraine who are engaged in baking bread. And if, against this backdrop, mandatory VAT payments are introduced for them, it will not only be a blow to small businesses, but a real tax blackout — with the risk of production closures and further price increases,” the parliamentarian stressed.
As reported, the prospect of introducing mandatory VAT payments for sole proprietors in groups 1-3 is currently being considered as part of the adaptation of Ukrainian legislation to EU standards and the National Revenue Strategy, which provides for the gradual abolition of the simplified system in its current form. The main risk lies in a significant increase in the administrative burden: entrepreneurs will have to keep accounting records, register tax invoices, and add +20% to the cost of their goods or services, which may make small businesses uncompetitive compared to large players. Although this decision is aimed at de-shadowing the economy and combating schemes for the use of sole proprietorships by large businesses, for the actual self-employed population, such a step could become a critical financial barrier.
