Open appeal of business associations on the need for immediate cancellation of the additional import duty

Jul 17 2015 published c earnings

25 leading business associations publicly appealed to President, Прем’єр-міністра та Голови Верховної Ради України із закликом термінової відміни додаткового імпортного збору. To appeal committee entrepreneurs joined the Chamber of Commerce Ukraine.

Action additional import duty to the end 2015 year would reduce real GDP in Ukraine 6%, and gross value added in the domestic sectors of the economy on average 18,5%. These results showed a simulation system Global Trade Analysis Project (GTAP), SRI carried State Informatization and Economic Modeling.

In addition, expected negative tax effect due to a shortfall in tax on domestic enterprises to the amount 36,3 billion. грн та збільшення внутрішніх цін на продукцію в середньому на 9,4%, а експортних цін на вітчизняну продукцію на 7,4%. GTAP modeling has confirmed the actual results of the industry, representing the signatories of the appeal.

Therefore, Ukrainian producers demanded to cancel the additional import fee in the amount of 10% for agri-food products and 5% on other products. The introduction of an additional import duty was not accompanied by thorough calculation of its negative effects, а величина була досить умовною – розмір додаткового імпортного збору (5% and 10%) in many cases exceeds the standard import duty, contrary to economic logic.

Additional import duty is not a significant factor restricting imports, but rather, due to lower competitiveness of domestic producers on foreign markets, призводить до падіння експорту і втрати українських позицій на традиційних ринках збуту.

Each subsequent month of the additional import duty reduces the chances of Ukrainian technological products processed in the competition on the foreign and domestic markets. In such circumstances, is economically attractive production of raw materials, compared to high technology, high-tech products with great degree of processing.

Thus, establishes additional import duty status, as agro-raw appendage.

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