Same taxes for hypermarkets and hawkers

“We are not considering tax pre-ferences for small business because if there are two differently-taxed entities in one field, one of them is bound to go bankrupt,” Deputy Prime Minister Borys Kolesnikov said in an interview with the newspaper Kommersant-Ukraina.

Kolesnikov explained this unexpected decision by the intention to create a really competitive business environment. “Mykhailo Brodsky recently held a meeting with supermarket owners. They say: we are paying an income tax, a profit tax, and pension fund contributions, while there are 100 kiosks around us, that pay nothing. How can we compete?” the deputy premier said.

Incidentally, the deputy premier does not see any measures against small business in the new Tax Code. “There’s no difference in the way biscuits are sold at supermarkets and marketplaces,” Kolesnikov concluded. It will be recalled that during his presidential campaign Viktor Yanukovych promised small entrepreneurs five-year tax breaks. When the government was drawing up the Tax Code, they also talked very much about improving conditions for small businesses. What caused this abrupt change in the go-vernment’s views? The Day tried to ask Kolesnikov directly about this. However, we failed to get in touch with the deputy premier through his spokesman.

Natalia KOZHEVINA, president of the Ukrainian Business Incubators and Innovation Centers Association, and chairperson of Yednannia (All-Ukrainian Trade Union of Small and Medium Business):

“In a crisis situation, the government should create conditions for the survival and work of the people, instead of fighting against them. Small and medium businesses play a key role in an economic system, and are able to fulfill socially important tasks. The current governmental team at first actively promoted the liberalization of conditions for such businesses, but then, for some reason, backtracked.

“I would also like to draw Mr. Kolesnkov’s attention to the fact that creating new jobs by large business requires a lot of time and funds. The outright ban on small and medium businesses, which the current governmental course of economic reforms is in fact aimed at, will not promote the inflow of workers into production facilities.

“The state should first create jobs. Only then, gradually, should it transfer people from small to big businesses. Besides, people need to be trained to be employed as industrial specialists.

“Until this has been done, the people who came to power should keep small and medium businesses economically attractive. On our part, we are open for dialog. We are ready to explain things to those who confuse gray schemes with self-employment and self-provision, which affect millions of Ukrainian families, and have not yet understood the mission of small and medium businesses and their role in our country’s sustained economic development.

“But we are thoroughly convinced that these declarations by Deputy Premier Kolesnikov will only destabilize Ukraine’s economy and push small and medium businesses to indignation, strikes, and active protests.”