December 20, in the framework of the concluding press conference of the Ministry of Economic Development and Trade, the First Vice Prime Minister/ Minister of Economic Development and Trade Stepan Kubiv said that the Ministry of Economic Development and Trade proposes to reduce the percentage of dividends and net profit channeled by state-run enterprises to the state budget.
"The current rules for paying by state-run companies, in particular, 75% of net profit to the budget, to say the least, do not contribute to the efficiency of operation of these companies since they actually do not leave them free funds for reinvestment. We propose to reduce this percentage to at least 50%. We also offer the reduction of up to 50% in the share of dividends paid by state-owned joint-stock companies", said Stepan Kubiv.
As is known, starting from 2015, state-run companies are obliged to pay a percentage of their earnings in the amount of 75% to the state budget.
"In 2018, as of today, state-owned enterprises paid over UAH 31 billion of dividends and transferred UAH 7.5 billion of part of their net profit. At the same time, the depreciation of fixed assets of state enterprises makes up about 73%. If the production facilities are not upgraded, then Ukraine's economy, namely, industry and the innovation sector, will lose significantly in its competitiveness. State-run enterprises should have funding for the modernization and the net profit they receive should, first of all, be invested in their own development and expanding of markets for their products", said the First Deputy Prime Minister.