The Verkhovna Rada may tax international parcels. This was announced by Danylo Hetmantsev, chairman of the Verkhovna Rada Committee on Finance, Taxation and Customs Policy. He says that they plan to adopt a separate bill that will cancel the exemption. The document is currently under development. 
Lawyer and business protection expert Viacheslav Trunov in an exclusive interview
“At first glance, the idea looks like an attempt to increase budget revenues, especially in times of war, when every hryvnia is important for financing defence needs. At the same time, such a proposal could have serious consequences for both ordinary citizens and businesses, including volunteer initiatives and drone manufacturers,” said Vyacheslav Trunov.
Risks for volunteers and drone manufacturers
Small drone manufacturers, volunteer organisations and those who raise funds for the military often order drone parts through international marketplaces, the lawyer said. Such parcels can cost more than €150, and until now, they have not been subject to customs duties or VAT.
“Now the price of spare parts could rise by 20%, and for volunteers or small producers who are working at the limit of their capabilities, this will be a significant blow,” Trunov added.
Even if drone manufacturers are included in the list of companies exempt from paying customs duties and VAT, this does not eliminate the problem of lengthy procedures and inspections, which will only slow down production processes. And in a war, time is one of the most important resources, Trunov said.
The draft law may burden customs
The lawyer also draws attention to the administrative aspect of the draft law. He says that the introduction of VAT and customs duties on all parcels, regardless of value, creates a huge burden on customs authorities.
“Imagine that instead of a small number of parcels subject to customs clearance under the old rules, customs will have to process tens of millions of parcels, even if their value is $2-3. This can literally paralyse the work of customs and postal operators, which will lead to significant delays in the delivery of parcels,” explains Trunov.
How will the draft law affect small and medium-sized businesses?
This approach may become an additional obstacle to business development, says Trunov:
“For many entrepreneurs, especially those working in e-commerce, importing components or goods is a critical element of their business. Increasing the cost of imports can lead to the fact that some small companies simply cannot compete with large players in the market. This, in turn, will reduce competition and increase monopolisation in some sectors.”
Thus, according to Vyacheslav Trunov, the Cabinet of Ministers’ initiative to tax all parcels in its current form poses more threats than benefits.
Are there any alternatives to the draft law?
An alternative could be targeted measures, says Vyacheslav Trunov, a lawyer and business protection expert.
In particular, focus on combating shadow schemes instead of taxing all parcels in a row.
Trunov suggests
- introduce clearer control over commercial parcels, instead of restricting access to international markets for ordinary citizens;
- simplify procedures for volunteers and drone manufacturers. In particular, to create fast and simple channels for the supply of components that will not slow down the work of these enterprises;
- improve tax administration. Instead of raising taxes, review the efficiency of spending and administration.
At the same time, investment banker Sergiy Fursa in an exclusive commentary
“It is the right thing to do and will fill the budget,” Fursa said.
Author: Anastasiia Fedor