Business news from Ukraine

UKRAINIAN BUSINESSMEN DISCUSS IMPROVEMENT OF BUSINESS CLIMATE WITH PM

4 July , 2016  

KYIV. July 4 (Interfax-Ukraine) – Representatives of the Union of Ukrainian Businessmen (SUP) have discussed problematic issues hindering development of business with Ukrainian Prime Minister Volodymyr Groysman.

The SUP said in a press release that at a meeting on Friday taxation, currency restrictions, old regulatory requirements, corruption of official and the shadow economy were discussed.

SUP members proposed to introduce the requirement to obligatorily register payment transactions with imported goods in the whole trade chain, adopt a full electronic document turnover between customs agencies and businessmen, open customs statistics to meet international requirements. This would help to hinder the shadow imports.

The simplified taxation system for small business should be improved. The SUP representatives proposed setting tax rates for these companies, taking into account the spheres where they work.

The founder of 3 Bears company and a board member of SUP Dmytro Ushmayev proposed to increase the term to return currency income from 90 to 180 days and eliminate the requirement to obligatory sell 65% of currency income for producers and exporters.

The SUP said in a press release that business representatives said that it is important to create the national export-credit agency. The state would be able to guarantee exports credits and insure them from political and other risks. Groysman said that the government is mulling the possible format of the agency’s operation.

The problems of construction sector were also discussed at the meeting. The co-owner of Midland Development Ukraine and board member of SUP Olena Shuliak said that the main problems of the sector are the absence of town-planning documents, the long land allocation procedure, complicacy of connecting to utility networks, old design requirements, corruption in issuing permits and the necessity of paying fees to towns.

“An agreement to hold a separate meeting of the prime minister with constructors and joint work of the SUP and the government to find mechanisms to re-launch the sector has been reached,” the association said.

According to a posting on the government’s website, this work will include improvement of national construction requirements.

At the meeting Groysman announced the soon reloading of the council of businessmen under auspices of Ukraine’s Cabinet of Ministers. The council should become a real tool for analyzing initiatives, opportunities to reach the government and make proposals. The prime minister announced that the office for accompanying investment would be soon created.

“It is planned to create these offices all over the country. This would help to understand problems of business and quickly react to them,” Groysman said.

He said that the government would not cover up tracks of corruption and seeks to remove pressure of supervision agencies on business.

The Union of Ukrainian Businessmen (SUP) was registered on January 29, 2016. Its board consists of top managers of 18 Ukrainian companies: Nova Poshta, UBC Group, Stekloplast, Softserve, Pharmplanet, IMC Group, Horizon Capital, Baker Tilly Ukraine, Spizhenko Cyberclinic, А7 Group, 3 Bears, Fedoriv, MTI, Rozetka.ua, Midland Development Ukraine, TM Cosmo, Arzinger and TMM. Around 50 companies are official SUP members.