To the Prime Minister of Ukraine

Minister of Economy of Ukraine

Minister of Finance of Ukraine

Heads of the Committee on Finance of the Verkhovna Rada of Ukraine, tax and customs policy

Heads of the Committee of the Verkhovna Rada of Ukraine on Economic Development

Members of the Ukrainian Business Council Coalition, which includes 105 business associations of various sectors of the economy, express their respect to you and address you as follows:

Recently published conclusions investigation of the Business Ombudsman Council regarding the operation of the SMKOR system. The key conclusions of the Council are::

• IN 4 quarters 2022 Year of blocking touched 65 tis TOV, what is 40,4% from active VAT payers.
• Time spent on unlocking PN is more 12 hours of time of the accountant/director.
• During the operation of the system, it was eliminated 2/3 gray schemes, but now the system is not working optimally - there is more manual mode, broader and less clear criteria, the mass of blockages, improper justification of DPS decisions.
• Close 95% court cases regarding blockages - taxpayers will win.

Based on the results of the investigation, the Council of the Business Ombudsman made the following proposals, to fix the system:

• Improve risk orientation, clearer criteria, more automation
• Make a real analysis of the regulatory impact of the system, real calculations (additional revenues to the state/business expenses)
• Build the system's fuses - the system must first warn the payer
• Allow admins to challenge tables
• Provide information on the risks of counterparties, remove risk "retrospectively"
• Publish more statistics on key system indicators

Critical situation with long queues, which was formed at the border crossings of the Ukrainian-Polish border at the beginning of September this year, has improved significantly.

This was reported by the president of the Association “Ukrkondprom” Oleksandr Baldyniuk.

“As of today, queues have been reduced by almost 10 times, in particular, in the same Yagodina - to 250 auto, and the idle time of trucks at the border is tripled, from ten to three or four days. It's more, than the Ukrainian exporter would like,  but progress is evident”, – noted the head of Ukrkondprom.

According to him, the cause of traffic jams was the low capacity of border crossings, caused by cargo inspection procedures on the Polish side with the growing cargo flow on the Ukrainian side in wartime conditions.

He paid attention, what “During the eight months of Russia's military aggression, truck carriers became the main transport pillar of the Ukrainian economy: 14% export and 53% imports were transported in September 2022 of the year by motor vehicle”. 

According to the head of Ukrkondprom, the crisis was significantly reduced thanks to the joint efforts of the relevant Ukrainian state bodies within the project “Open border”.

The full text of the press conference can be found at the link: https://interfax.com.ua/news/press-release/863845.html

Such a statement made by the President of the Association "Ukrkondprom" Alexander Baldynyuk.

He reported, what 22 December, the price of gas on the stock exchange has already crossed the line 73 th. UAH. Due with this, some companies in the industry have already informed the Association about the plans in full or partially curtail production.

"Confectionery businesses have been teetering on the brink of profitability for months extremely high gas prices and rising costs of all other components of the cost products. After all, the price of gas this year has been growing every month since January, when its cost to manufacturers was 5,9 thousand UAH. Last month, manufacturers bought gas on average at close prices 40 thousand hryvnias and already at such its cost production of many products was unprofitable, and performance previously signed contracts were unprofitable for the industry. In December suppliers offered gas 55 per thousand. hryvnias per thousand cubic meters,  at which to sell products for economically reasonable prices would already be very difficult. And at the cost of gas for production needs 73 th. UAH. for a thousand cubic meters it is easier for confectionery companies to fold at all production, after all, at this cost, the product will not be in demand at home, nor in foreign markets ", – explained O. Baldynyuk.

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