Infrastructure support, help with finding a job - an economist explains how community authorities can facilitate the opening of new businesses
Kyiv • UNN
The economist spoke about the ability of local authorities to facilitate the opening of enterprises through infrastructure support and assistance in finding labor. The expert also noted that a change in the tax system could increase the motivation of the authorities.
Local authorities can and should, within their competence, promote the opening of various industrial enterprises in their communities, which would increase investment in the economy and budget revenues. However, due to the peculiarities of Ukraine's tax system, not all local leaders have enough motivation to do so. This opinion was expressed by economic expert Andriy Novak in a commentary to UNN.
Details
In today's environment, local authorities can facilitate the maximum opening of enterprises of any scale by providing them with maximum infrastructure support within their competence and capabilities, i.e., roads, electricity, and all in an operational mode, sewage, water supply, all permits, assistance in finding labor, through their respective social structures. Only in this mode
At the same time, according to the expert, in the current economic situation, local authorities can do little to help in this regard. The reason is that a significant portion of taxes and fees goes to the state budget. According to Novak, if 50% of tax revenues remained in the communities, it would encourage local authorities to be more active.
"If you introduce the 50-50 principle, the motivation immediately changes, realizing that half of all taxes remains in the local budget, then local authorities work differently and are strongly motivated to have as many businesses on their territory as possible, to make them profitable, and to have as many residents as possible living on their territory, because they are also individual taxpayers," the economic expert added.
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In the Brovary community, almost all industrial enterprises have resumed operations after the start of the full-scale invasion, and the authorities are taking measures to stimulate business activity.
"We have new enterprises producing modular houses and window sills with modern design and a high level of coating protection. Businesses that were operating in the community before the full-scale invasion are building new production and warehouse facilities. To stimulate economic development, electronic auctions are held to sell land lease rights. In order to support business activities, free common areas of municipally owned premises are leased to business entities on a competitive basis with a penalty for late payment of rent. In the first half of this year, more than 18 thousand square meters of communal property were leased on such terms," said Olena Krasnyk, Deputy Mayor of Brovary, in a commentary to UNN .
Recall
Brovary Mayor Ihor Sapozhko told UNN that during the martial law period, 76 investment projects managed to attract more than UAH 466 million in investments and create almost 600 new jobs.
