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Still in Business? Pay More!

27 July, 00:00

Is this the motto under which the government lobbies the container tax? By Vladyslav MYKHALIOV, The Day It may well happen that Yevhen Chervonenko, presidential advisor and president of the Orlan Concern, and "those like me" discover they have wasted their lives. At least he said so at a news conference of the Hordist Ukrayiny (Ukraine's Pride) Food Producers Association. On the other hand, if Cabinet resolution No. 1225 of July 9, 1999, is repealed, this entrepreneur will consider that he has lived for a good cause. Thus passions boil in the struggle between domestic food producers and the government.

The said resolution, instituting the container disposal tax, is meant to serve the noble cause of protecting the environment against production waste. Yet, as is traditional in Ukraine, if and when implemented the stated purpose will never be achieved, while all goods in containers will cost 10% more, believe representatives of Orlan, Halakton, Tetra Laval Ukraine, and other firms.

There is also this evidence that so-called state businessmen seriously want to make money at the expense of enterprises still alive and breathing. Orlan Beverages annually pays almost UAH 1,150,000 to budget and off-budget funds. One-third of this amount is on account of services provided by Ukrtaropererobka (Ukrainian Container Recycling), provided always that demand for its products does not drop - which it will, considering the price increase and staggering arrears on pensions and other social payments. Halakton statistics show that the latest 2.5% increase in the cost of its products caused a 25% drop in demand.

The executive branch's tender loving care for the environment is especially evident in the fact that used containers and packaging make up a mere 5% of total waste material in Ukraine. Hordist Ukrayiny attributes this bureaucratic interest in the disposal of containers to the fact that "there is still 'live money' in the food and medical industries that can be shaken out."

People's Deputy and leader of the pro-business Reforms & Order Party Viktor Pynzenyk said of the new container disposal tax resolution, "It is a tax in form and money-grubbing in essence," adding that it is a logical sequel to the current President's and government's policy.

PS. Shortly after this article was published it was announced that Cabinet resolution No. 1225 was canceled on the President's order.

Newspaper output №:

№28, (1999)

Section

Economy