ministry-of-economy-on-the-national-cashback-program-one-of-the-goals-is-to-de-shadow-the-economy

Ministry of Economy on the National Cashback program: one of the goals is to de-shadow the economy

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One of the goals of the National Cashback program is to de-shadow the economy. This was announced by Deputy Minister of Economy of Ukraine Nadiya Bihun during the presentation of the study: "The attitude of Ukrainian consumers to the National Cashback program", reports UNN.

We modeled the economic impact of the program. This analysis is based on the fact that demand stimulates supply, and by stimulating demand for Ukrainian goods, supply will increase accordingly.  Obviously, this will not happen overnight. Demand will  increase gradually and consumers will gradually switch to more locally produced goods instead of imports. Traders are also an important aspect. What a retailer puts on the shelf, what products they offer to their customers will determine what they buy. The more Ukrainian-made goods a retailer supplies, the more customers will find them in retail chains

- said Runner.

According to her, the Ministry of Economy expects that the first year of investments in the National Cashback program will pay off through increased production.

Майже 90% українців готові купувати вітчизняні товари за наявності кешбеку - опитування23.08.24, 11:59

The impact that we expect, which is shown by our analytical model, is that in the first year the investments that will be made in this program will pay off through increased production, and next year we will have more production growth, because consumer behavior will change gradually

- said Runner.

Runner reminded that last year, the budget allocated UAH 3 billion for the consumption of domestic demand for goods and services.

This program is now being implemented as a program to stimulate demand for goods and services. Our calculations show that this budget will be sufficient, but obviously, since this is the first experience and in fact technologically, it is not a simple system and it required very deep development. So we will be looking at the numbers when the program starts and we will adapt our program to match the way it will be implemented. Our calculations show that 3 billion will be enough

- Bihun said.

Національний кешбек запрацює з 2 вересня - Мінекономіки20.08.24, 12:00

In addition, Ms. Bihun noted that there is no requirement for a manufacturer to have a common taxation system.

In other words, any manufacturer can enter the program -  a sole proprietor on a simplified system, any manufacturer. The main requirement for a manufacturer is that the manufacturer must have production facilities in Ukraine, i.e., it must produce here. As for traders, we had a discussion about them. Traders should be on the general taxation system and not avoid the legal taxation system. Because in organized trade, we  still see a lot of shadowing  and many traders avoid paying taxes before they comply with the law. One of the goals of this program is to de-shadow the economy

- said Runner.

 She named the mandatory criteria for joining the National Cashback program.

A fiscal receipt is mandatory, the general taxation system and only cashless payments ensure cashback accrual. In other words, we are using soft tools to push this trading system to move towards de-shadowing and whitewash trading operations

- Runun said.

Recall

The Ministry of Economy forecasts the impact of the cashback program on Ukrainian goods on GDP in 2024 to be about 0.25%. The program will stimulate the consumer economy and cover the whole of Ukraine and all citizens, except for excisable goods.

Україна запустить національну програму кешбеку "Купуй українське" для підтримки вітчизняних виробників01.03.24, 23:17

Anna Murashko

Economy

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