Government shapes further mechanisms aimed to protect honest business and facilitate doing business, claims Volodymyr Groysman
Information and Communication Department of the Secretariat of the CMU, posted 13 June 2018 11:58

The Cabinet of Ministers of Ukraine within the framework of the policy of enhancing the economic position of the country develops further decisions aimed at protecting the interests of honest business and facilitating doing business. Prime Minister of Ukraine Volodymyr Groysman announced during a Government session.

Among such solutions is the introduction of a system of electronic cheques in Ukraine that minimizes the  use of payment transactions recorders (PTR) and paper data files as well as increasing the responsibility of law enforcement agencies for violating the procedures enshrined in the bill protecting business, known as ‘Stop Masks Show’ initiative.

"Today we will adopt decisions concerning the entrepreneurs. Issues at stake are cash registers and further protection of the interests of honest business ", the Prime Minister underscored.

He recalled that regulations on the use of RTRs have been existed for decades along with harsh penalties for non-use of the said devices. The total amount of such "additional fees" was, according to various estimates, up to 2 billion hryvnias per year. "We will put an end to the unfair treatment of entrepreneurs. We give green light to the introduction of an electronic check", the Head of Government stressed.

He added that the development of the solution has been lasted more than a month and was actively discussed with the business environment, which expressed great support for this decision.

"Another Government decision concerns ‘Stop Masks Show’ initiative. We have regions in which all court decisions - on searches and seizure of documents are held  in accordance with the law. That means, the audio recording of the meeting and investigating carefully the case.  And in some regions, only 20-30% court decisions are taken in line with the procedure, and in the remaining cases everything takes places in non-transparent way. It discredits the judicial system of Ukraine. We are ready to amend the legislation on strengthening the responsibility of law enforcement officers for unlawful actions, the Prime Minister stressed.  I fully support dutiful law enforcement agencies that protect public interest and uphold our sovereignty. And I have zero tolerance for those who undermine the national economy".

The Head of Government added that everyone, who put on badges should serve the interests of the  country not someone else’s. "We will move on. I call on the Parliament to consider and adopt a draft law. I hope the Parliament will demonstrate cohesion in order to adopt a decision. This is an important issue ", the Prime Minister added.

Background

In early June, the Head of Government met with business representatives in the course of which issues pertaining to significant simplification of the use of payment transactions recorders because this will allow not only to remove additional financial and time burdens on business but also to take a meaningful step forward in fighting against gray market , smuggling and illegal trade. The the idea of such easing arose during the drafting a law protecting business rights the "mask show stop" initiative. "At the same time, we discussed the need to fight the gray market and protect the rights of consumers. This (effective use of RTR) is also a tool in fighting illicit trafficking, the Head of Government noted.  It is  of predominant importance to ensure order in the country and  paying taxes honestly".

The meeting agreed that the existing scheme of registrars is too complicated. Acting Commissioner of the State Fiscal Service of Ukraine (SFSU) Myroslav Prodan noted that today the price of software for registrars is from UAH 4 to 20 thousand, and monthly maintenance makes up not less than UAH 200. Confirmation of the operation - paper check, which is still pasted into cash books. It requires numerous applications and documents and a minimum of 5 days to complete the reports. This is not surprising that entrepreneurs  in such circumstances often avoid any registrations, and therefore paying  taxes and fees. According to business representatives, this situation forms a huge imbalance between white and gray business.

A new initiative developed by the Government and the  State Fiscal Service is the polar opposite of the current system. The key difference is on-line registration via phone or tablet, lack of supporting documents, no subscription fee and the use of an electronic check with QR-code, which will be automatically entered in the register, available in the tax office's electronic cabinet. The SFSU plans to use two independent datacentres, and to provide software for them by saving money on other projects through the use of the ProZorro public procurement system.

Acting Commissioner of the SFSU stressed that the proposed use of the PTR is easily integrated with other SFSU systems and accounting programs.

As to the draft law on strengthening the responsibility of law enforcement officers, it is a clear mechanism for fixing the responsibility of a particular official or law enforcement officer. It  must be drawn up in the form of a complaint to the court. The court undertakes to make a decision - including on the investigation of actions of officials or law enforcement officers. Following the materials of the investigation material or disciplinary penalties may be imposed. Thus, according to the authors of the bill, citizens' ability to protect their interests will be strengthened.