The Ukrainian League of Industrialists and Entrepreneurs (ULIE) has sent an official letter to the Minister of the Cabinet of Ministers Oleh Nemchinov and the leadership of the Administrative Buildings Department of the Economic and Financial Department of the Cabinet Secretariat, stating that it is impossible to fulfill their demand to vacate the office in downtown Kyiv on Khreshchatyk, which the union has occupied for 32 years, by March 10.
“We consider unacceptable any unilateral restrictive steps taken by representatives of the department that will block the activities of the ULIE and its partners – national associations of industrialists, entrepreneurs and employers, members of the Anti-Crisis Headquarters for Economic Sustainability under martial law, which are directly related to the implementation of the initiatives initiated by the President of Ukraine and the Cabinet of Ministers, in particular, “Made in Ukraine,” the ULIE said on Monday.
The union told Interfax-Ukraine that the Cabinet of Ministers’ Secretariat had decided not to extend the UUIE’s location on Khreshchatyk, even on a lease basis. The ULIE claims that, nevertheless, the first floors of the building are occupied by commercial structures with which lease agreements have been concluded.
Among the arguments for the impossibility of fulfilling the demand of March 4 to vacate the occupied premises at 34 Khreshchatyk Street by March 10, the ULIE cites the March 12 meeting of the Anti-Crisis Headquarters for Economic Sustainability under Martial Law with the participation of, among others, representatives of the Cabinet of Ministers, the Verkhovna Rada and the National Security and Defense Council.
“Also in March of this year, the ULIE is planning a number of international events to attract expert assistance and investment resources from foreign partners to support the economic recovery of Ukraine,” the union adds.
In a letter signed by its chairman, former Prime Minister Anatoliy Kinakh, the ULIE emphasizes that it guarantees reimbursement to the balance sheet holder for the costs of maintaining the premises it uses and the utilities actually provided, as it has already informed government agencies.
It is noted that as of March 11, by order of the Secretariat of the Cabinet of Ministers, an attempt has already been made to prevent USPP employees from getting to their workplaces, and there is no electricity and Internet connection in part of the office.
It is noted that several dozen business associations, including the Ukrainian Chamber of Commerce and Industry, the Federation of Employers, the Federation of Trade Unions, Ukrlegprom, the Union of Chemists, Ukrmashbud, the Construction Chamber, Ukrmetallurgprom, as well as the second president of Ukraine Leonid Kuchma, who once headed the union, and Viktor Yushchenko, who later replaced him as head of the country, have already spoken out in support of the USPP.
An increase in the excise tax on heated tobacco products by 200% from April 1 this year and its further growth by 30% (up to 320% in total) in 2022-2025 – such a compromise solution will allow avoiding too sharp price jumps and will provide more tax revenues than the alternative “shock” scenario, according to the Ukrainian League of Industrialists and Entrepreneurs (ULIE).
As reported on the union’s website on Monday, the business supports relevant bill No. 4278, which provides for such a procedure for increasing the excise tax. At the same time, the organization believes that this approach, among other things, will save jobs in companies, and the legal market, without reducing tax revenues to the budgets of various levels.
According to the business league, the Verkhovna Rada Committee on Finance, Tax and Customs Policy, when considering bill No. 4278, supported an increase in the excise tax on heated tobacco products by 200% in 2021 and a subsequent annual increase by 30% in 2022-2025.
The ULIE referred in a press release to the data of the Institute for Economics and Forecasting of the National Academy of Sciences of Ukraine, according to which a gradual increase in excise tax rates on heated tobacco products within five years will provide UAH 18.7 billion more tax revenues than the alternative “shock” scenario with an increase in excise tax immediately in 4.2 times this year.
At the same time, the ULIE clarified that under the model of a gradual increase in excise tax, Philip Morris Ukraine tobacco company guaranteed the payment of more than UAH 11 billion of excise tax on heated tobacco products to the state budget of Ukraine during 2021-2022.
The Ukrainian League of Industrialists and Entrepreneurs said that legislative amendments affecting the consumer basket should correlate with the purchasing power of consumers, which will ultimately be affected by the rise in prices for products. “Otherwise, this situation will stimulate smuggling and the illegal sector,” the business league said.
As reported, on January 16, 2020, the Verkhovna Rada adopted law No. 1210, which introduced amendments to the Tax Code of Ukraine, increasing the excise tax rate on heated tobacco products by 4 times from January 1, 2021. Also, a separate product subgroup is introduced for heated tobacco products.
