Ukraine

“Parcel tax” threatens the Ukrainian economy and can stimulate smuggling: CEO Meest International

The introduction of the so-called “parcel tax” can harm the Ukrainian economy, reduce tax revenues and deprive Ukrainians of the opportunity to buy affordable goods abroad. This was stated by the co-founder and CEO of Meest International Vasyl Zhuravel, informs “Economic truth”.

“The mechanism by which it is proposed to introduce this tax is a cause of serious concern. In its current form, the draft law may lead to negative consequences, such as the growth of “gray” schemes, reduction of tax revenues and even undermining of the country’s defense capabilities.”, — noted Zhuravel.

He emphasized that the growth of the e-commerce segment is an important source of income for the state budget.

“Experience shows that the market and the state benefit when e-commerce develops. For example, last year our postal operator “Rosan” paid UAH 219 million in taxes to the budget, and this year it is expected that this amount will increase to more than UAH 275 million. To ensure revenue growth , e-commerce should be supported, not the other way around.” he added.

Zhuravel also warned that the introduction of a “parcel tax” could cause a large part of international trade and legal imports to return to the shadow sector, which would lead to an increase in smuggling. In his opinion, this tax will not only not fill the budget, but will also become an additional financial burden for businesses and citizens.

“The administration of this tax will cost at least UAH 100 for each parcel, which is a disproportionately high cost compared to the taxes that are planned to be collected”, – stressed Zhuravel.

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In addition, the legislative initiative may have a negative impact on the country’s defense capability. During the war, Ukrainians buy military and related goods abroad much more often. Every 20th parcel is intended for the front: it is tactical clothing, ammunition, spare parts for drones, electronic devices and more. If the bill is passed, advocates and volunteers will have to overpay for these goods or even refuse them.

Zhuravel also noted that Ukraine should consider the possibility of implementing the European model of postal control, but the approach to this should be gradual and balanced. For this, it is necessary to adapt national legislation, in particular the Customs Code and the Law “On Electronic Commerce”. He reminded that the EU spent about five years on such a transformation.

 

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