Business news from Ukraine

PRESIDENT OF UKRAINE COMMENDS ADOPTION OF LAW ON NATIONWIDE REFERENDUM BY PARLIAMENT

President of Ukraine Volodymyr Zelensky commends the adoption of the law “On democracy through the nationwide referendum” (draft law No. 3612) by the Verkhovna Rada, the presidential press service reported.
“Now Ukrainians will be involved in practice in making important decisions for the country, and the government will be forced to listen to the will of the people. The referendum is an important tool for expanding democracy in Ukraine,” the President stressed.
Zelensky noted that the adoption of the relevant law was one of the important points of his election campaign during the presidential elections, as the document makes the dialogue between the government and society clearer.
It has been determined that the following issues cannot be the subject of the nationwide referendum:
– those contrary to the provisions of the Constitution of Ukraine, generally recognized principles and norms of international law, enshrined primarily in the Universal Declaration of Human Rights, the Convention for the Protection of Human Rights and Fundamental Freedoms, protocols thereto;
– those abolishing or restricting the constitutional rights and freedoms of man and citizen and guarantees of their realization;
– those aimed at eliminating the independence of Ukraine, violating the state sovereignty, territorial integrity of Ukraine, creating a threat to the national security of Ukraine, inciting interethnic, racial, religious hatred;
– those related to taxes, budget, amnesty;
– those referred by the Constitution and laws of Ukraine to the jurisdiction of the law enforcement agencies, the prosecutor’s office or the court.

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PARLIAMENT REGISTERS DRAFT RESOLUTION ON DISMISSAL OF SHKARLET FROM POST OF EDUCATION MINISTER

The Verkhovna Rada has registered a draft resolution on the dismissal of Serhiy Shkarlet from the post of Minister of Education and Science of Ukraine.
Document card No. 4525 appeared on the parliament’s website.
The authors of the resolution are deputies of the Holos and European Solidarity factions.
The text of the resolution has not been made public yet.
As reported, on December 17, the Verkhovna Rada appointed Serhiy Shkarlet as Minister of Education and Science of Ukraine.
Representatives of Holos stated that they had registered the facts of “pushing the buttons” during the voting for the appointment of Shkarlet. The European Solidarity faction also announced violations during the voting and asked the regulatory committee to review the situation. Representatives of both factions announced their intention to go to court to appeal against the appointment of Shkarlet to the post.

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PARLIAMENT INCREASES AGE LIMIT FOR WORKING IN CIVIL SERVICE TO 70 YEARS

The Verkhovna Rada has changed the age limit for working in the civil service.
The adoption of relevant bill No. 4096 was backed by 300 MPs at a meeting on Wednesday.
In particular, the Rada excluded from the law “On Civil Service” the provision that a person who has reached the age of 65 cannot enter the civil service.
Instead, they are given the opportunity to be appointed to a civil servant position for one year, with the right to reappointment without the obligatory annual competition.
The adopted bill provides that their further stay in the civil service is possible for no more than 70 years.
This law comes into force on the day following its publication.
Also, according to the law, the term of service in local self-government bodies was extended, but by no more than five years by the decision of the village, settlement, city chairman, chairman of the district, district one in the city, regional council. Such a decision to extend the term of service in local self-government bodies is made by the chairman of the relevant council annually, but no more than until the civil servant reaches the age of 70.

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MINISTER OF CULTURE EXPECTS PARLIAMENT TO ADOPT LAW ON CAPITAL SOON

Minister of Culture and Information Policy Oleksandr Tkachenko expects that the Verkhovna Rada will soon adopt the law on the capital at the second reading.
“I took part in local elections. I voted at my polling station in Kyiv. I hope that local communities will receive worthy representatives in the government,” Tkachenko wrote on his Telegram channel on Sunday.
The minister also complained that the Verkhovna Rada did not have time to vote for the law on the capital at the second reading.
In his opinion, this law would radically change the opportunities, in particular, for the people of Kyiv to participate in the city’s self-government, as well as restore the district and local councils and allow the community to receive much more powers, including control over the activities of the authorities.
“However, I think that the parliament will be able to return to this issue in the near future,” Tkachenko added.

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PARLIAMENT APPROVES PREFERENTIAL CONDITIONS FOR IMPORTED EQUIPMENT FOR ELECTRIC VEHICLES PRODUCTION UNTIL 2028

The Verkhovna Rada of Ukraine has approved some fiscal incentives for the development of electric transport in Ukraine, in particular, VAT and import duty exemption from 2021 until 2028 for equipment and spare parts for own production of electric transport (passenger cars, electric buses, electric trucks and special-purpose vehicles).
Bill No. 3476 amending the Tax Code and bill No. 3477 amending the Customs Code were passed at the first reading by 316 and 308 lawmakers respectively.
The proposed exemption will not apply only to equipment for the production of trolleybuses, because their output has already been established in Ukraine.
In addition, bill No. 3476 proposes to exempt the electrical industry companies selling electric motors for the production of electric vehicles (with the exception of trolleybuses), lithium-ion batteries, chargers, as well as automobile companies selling electric cars of their own production from paying income tax until December 31, 2033.
The bill proposes to extend or expand benefits for importers and buyers of electric vehicles.
It is proposed, in particular, to extend the VAT exemption for import and/or supply of electric cars until December 31, 2025 (currently the benefit is valid until the end of 2022).
A buyer of an electric car before December 31, 2030 is also offered to be exempted from paying the mandatory pension insurance fee, be provided with a tax discount on the payment of personal income tax, but these standards are proposed to be introduced from January 1, 2026.
According to an explanatory note to the bills, there is a sufficient industrial potential of Ukraine in the production of electric vehicles. In particular, there are five bus plants, a truck plant, and the facilities, which produce 300,000 passenger cars at three plants.
However, today the government is stimulating the import of electric vehicles, not their production. In particular, from January 1, 2016, there is no import duty, exemption from VAT is extended until 2022 and the excise rate is set at EUR 1 per 1 kW/h of battery capacity.
“The introduction of preferential taxation increased the import of electric vehicles from 1,706 vehicles in 2016 to 7,542 vehicles in 2019, but used electric vehicles are dominating in the market (93% in 2019),” the authors of the bills said.

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PARLIAMENT RATIFIES AGREEMENT ON CO-PRODUCTION OF AUDIOVISUAL WORKS WITH CANADA

KYIV. Sept 2 (Interfax-Ukraine) – The Verkhovna Rada has ratified an agreement on the joint production of audiovisual works between the governments of Ukraine and Canada.

Some 318 deputies voted for corresponding bill No. 0040 at the plenary session on Wednesday.

The agreement was signed in Toronto on July 2, 2019.

An explanatory note to the draft law says that the ratification of the agreement will contribute to the intensification of the international activities of the subjects of cinematography of Ukraine in joint film production with other countries.

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