The Cabinet of Ministers of Ukraine, in synergy with experts, scientists and business associations, has prepared a program to stimulate the economy in order to overcome the effects of the COVID-109 epidemic. Prime Minister of Ukraine Denys Shmyhal announced while opening today’s Government session.
According to him, the concerned parties embarked on the preparation of the document immediately after the start of quarantine and have been working on for more than 6 weeks, and now it is proposed for public discussion.
"We have attracted dozens, specifically more than 90 developers, the best think tanks in the country, dozens of business associations and individual companies (including representatives of small and medium-sized businesses). Among those are the Chamber of Commerce and Industry of Ukraine, the Union of Ukrainian Entrepreneurs, the Ukrainian Union of Industrialists and Entrepreneurs, the European Business Association, the Association of Gas Producers of Ukraine, the Ukrainian Agribusiness Club, the Razumkov Analytical Center, the Institute of Economics and Forecasting of the National Academy of Sciences of Ukraine, the EasyBusiness Analytical Center, DIXI Group, CASE Ukraine Analytical Center and dozens of other entities. Therefore, it is an exaggeration to tell that this is an exceptionally Government's strategy because it is the strategy devised by the best experts, businessmen, scientists, analysts," said Denys Shmyhal.
According to him, “the crisis entailed by the coronavirus pandemic is, among other things, our chance to make radical transformations. This is our chance to change approaches and our chance to launch real change."
Moreover, the Head of Government stressed that the red line that runs through the entire program and is part of each element of the strategy is the principle of priority of Ukrainian producers who pay taxes and create jobs in Ukraine. "That is why the first part of the program is called the protection of Ukrainian goods, works and services from their imported alternatives. Sound economic nationalism is a strategy of many countries, and we will also advance in this direction," said Denys Shmygal.
Apart from that, according to the Prime Minister, the program envisages that Ukraine will use the full range of WTO and GATT (General Agreement on Tariffs and Trade) instruments to protect its enterprises. Each industry in the prepared strategy, added Denys Shmyhal, has two mandatory parameters. It concerns access to finance and access to markets. "Let me give you an example: if we are talking about supporting small businesses, it is affordable loan programs, launching grant programs, expanding the participation of SMEs in public procurement, as well as comprehensive assistance in entering foreign markets," the PM emphasized.
"Meanwhile, we are currently discussing reducing the tax burden on SMEs, as well as the "regulatory guillotine". Our success will be tangible when ordinary sole proprietors no longer need the help of accountants in filling out documents, and Ukraine enters the TOP-30 countries of the world in terms of ease of tax administration. This is our goal, it is critical to simplify the work of small businesses as much as possible, especially for micro-businesses," the Prime Minister stressed.
Denys Shmyhal also said that the complete document would be presented by the Minister of Economic Development, Trade and Agriculture of Ukraine Ihor Petrashko at a Government meeting today and published in order to quickly gather feedback and actively implement every step of the strategy to achieve economic recovery in the second half of 2020.