What’s expected of Ukraine’s brand new government?

Author : Illya Lukash

Source : 112 Ukraine

Business community anticipates improvements within five sectors
15:37, 14 April 2016

Read the original text at NV.UA.

Cancel currency restrictions

Temporary restrictions of the Central Bank on the foreign exchange operations dragged on for over a year. It affects not only the internal situation, but also the investment. No serious businessperson will invest in a country where there are big problems with the return of capital, receipt of dividends. This creates a situation where interest rates are sky-high in the banks, and commercial lending froze.

Related: Businessman shot dead in Kyiv

Update courts

Because of the corruption of judges, there are many problems in business. Banks cannot even get a mortgaged property, let alone elementary protection of property rights. The companies do not even sue, because it will be worse, and more expensive, and more difficult. The trials last for years, until the appeal court in the meaning is lost.

Enforcement of judgments is also delayed or not performed at all. There is no certainty that even if you win the court, the case will be brought to an end. We hope that through the mechanism of private bailiffs, the situation may improve.

Related: 20 Ukrainian companies included in Europe's business rating

Demonstrative punishment for corruption

For two years after the Maidan, no senior official has not been imprisoned for corruption. Yes, there have been high-profile arrest, and shows in the government, and electronic bracelets, but real imprisonment never happened. Therefore takers in government offices feel confident and are not afraid of anything. Everyone knows the names of the officials with the State Service for Emergency Situations, loudly detained, and where are they now? They are free! And this is the case, when the whole country was watching the process.

Of course, the key role in this belongs to National Bank, which soon should show the result. However, I doubt that they succeed without updating the courts.

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To reform the General Prosecutor's Office

Business often suffers not only from the failure by prosecutors of their duties, and their direct management of corruption transactions. They control inspections, and cling to the business pulling money. We showed to Sakvarelidze and Kasko a list of employers who are wrongly accused. By the way, Kasko was the only one who responded to our requests and helped in the establishment of justice. Where the business was wrong, he helped to reach an agreement. All other prosecutors to engage in dialogue with the business are not ready at all.

We need a change of the rules and operation of the Prosecutor General, and the replacement of people.

The tax "scoop" in service

In comparison with previous years, Arseniy Yatsenyuk’s government separated accessible and appropriate ministers and their deputies. Some officials were in touch only on the internet in chat rooms. But this is true only for big business, and with thousands of small business tax inspectors are in contact almost daily.

Related: Draft resolution on resignation of Yatsenyuk and his Cabinet submitted to parliament

Why businessmen are still required to take piles of papers and meaningless reports? Why businessmen should feel themselves criminals? Why tax rates are changed several times a year? It should be a moratorium on all these rates for at least a year or two.

My friend has registered a company in Estonia. In just a few days later, he received a call from the tax administration with the question: how can we help you? That is, they do not go with checks, and help the business to grow. Nobody prevents Ukrainian tax authorities to introduce a very simple tool - personal service manager, when every businessman has one person who helps to solve all the tax and customs issues.

It is clear that we should not hope for any change in the tax system taking into account current ridiculous salaries. Accordingly, it is necessary to raise salaries and change the selection procedures, and rules of the game.

Related: Yatsenyuk declared about USD 700,000 of incomes in 2015

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