Tax changes will hurt ordinary Ukrainians – the economist

Налоговые новации больно ударят по простым украинцам - экономист

Changes in the Tax code refer to the toughening of conditions for ordinary citizens who buy goods in foreign online stores. Now these goods for Ukrainians will rise.

The correspondent of ГолосUA said economist Viktor Skarshevsky.

According to the economist, the new changes in the Tax code that was made by the Parliament relate to the tightening of conditions for ordinary citizens – for example, for those who buy goods in foreign online stores.

This law introduced first from January 1, the maximum amount of a parcel up to 150€, and then the VAT, but since July 1, the value added tax will be charged on postage over 100 Euro for a single recipient-individuals.

“There are four basic. One point that this increases the cost of goods for ordinary citizens. The second point is that gray schemes of import will remain, because a large consignment imported by other grey schemes. The third point is that tax agents are assigned to postal operators. The fourth caveat is to administer the payments will be primarily “New mail”. The cost of administering the VAT can be quite high because many small parcels and a large amount of items. This can lead to increase of tariffs for the shipment, that is, not only the cost of the goods themselves more expensive for Ukrainian citizens, but the cost of shipping will increase,” – said V. Skarshevsky.

The economist added that the fact that tax agents are assigned to postal operators, means that people will pay for shipments (received and paid VAT), and will pay postal operators. The fact that postal operators will be tax agents, is contrary to common sense, and above all tax laws.

“Regarding postal shipments they even managed to distort competition because “Ukrposhta” is not a tax agent. It is the exception that is tricky says that those postal operators that operate 100% under the rules of the universal postal Union (this organization more than 140 years) are not tax agents, and to pay all payments are already the recipients of parcels, that is, in principle, citizens of Ukraine. That is, the “Ukrposhta” will not have additional expenses, she’ll get a competitive advantage over private postal operators. In any case, “Ukrposhta” from tax innovations will not be affected. Other postal operators have additional costs.

“Ukrposhta” wants to monopolize the market, in the Parliament there is another bill that is being discussed. So-called “tax agent” fits well into the logic of “Ukrposhta” from the point of view of monopolization”, – said Viktor Skarshevsky.

The economist explained that to be a tax agent is disadvantageous because an additional cost. And most importantly – it is contrary to the Tax code as a tax agent may be the only one who as, for example, in the Bank, paid some salary or bonus, the percent people who are tax agents. In the case of postal operators, they have provided services for the shipment, but it is quite another matter, and is contrary to the Tax code. And this is primarily an effort by ordinary Ukrainians.

“In any case, a rise in shipments for the Ukrainians, and at the same time reducing costs from their competitors, “Ukrposhta”. Summarizing, we can say that all these tax changes, as written in the document, bring the effect of additional income in the amount of 6.3 billion. And it’s only half a percent of all revenues. Only half a percent. Without solving the question of filling the budget, under the guise of just “half a percent” of revenue in the budget creates a negative impact on Ukrainian citizens, distorted competition”, – concluded V. Skarshevsky.