On 2 September, the National Cashback programme was launched in Ukraine, allowing customers to receive a 10% refund of the cost of Ukrainian goods purchased by them – those with the specially designed “Made in Ukraine” label. The programme involves 713 domestic producers and over 880,000 Ukrainians. To become a member of this programme, a customer needs to open a special card to receive cashback and select a card to pay for the goods. Komersant ukrainskyi
decided to find out who exactly has joined the National Cashback programme and why it has already been criticised.
The purpose of the National Cashback programme
The main goal of the National Cashback programme is to provide financial support to Ukrainians, according to the Ministry of Economy. Especially since the heating season is coming up and cashback money can be spent on utility bills.
In addition, this programme should support manufacturers, increase demand for Ukrainian goods and create new jobs.
Which Ukrainian producers have already joined the National Cashback programme?
According to Diia, 713 domestic producers have already joined the programme.
Among them are such brands as Roshen, TM Halychyna, Voloshkove Pole, Pyriatyn, Mermade, Yagotynsky, Lictravy, and others.
The Ministry of Economy notes that any consumer goods manufacturer whose production facilities are located in Ukraine can join the programme.
What products do Ukrainians most often receive cashback for?
According to the analysis of the Page, the most popular products for which Ukrainians receive cashback are socks – 1261 items were bought.
Also popular are:
- t-shirts – 394 items;
- cat food – 346 items;
- trousers – 340 items;
- office notebooks – 325 items;
- kitchen hoods – 304 products;
- suits – 290 products;
- enamel – 254 products;
- wallpaper – 248 products;
- entrance doors – 216 products.
You can also get cashback for chicken, nuggets, bread, dairy products, lollipops, chocolate, etc.
Which stores participate in the National Cashback programme
A large number of retailers have already joined the National Cashback programme. They include ATB-Market, Aurora, NOVUS, ECO Market, VARUS, OKKO, WOG petrol station chain, Ukrnafta, Apteka ANC, Epicentr K, Nova Liniya, Auchan, Comfy, Silpo, FORA and Pharmacy 3i. New retail chains and stores will continue to join the programme.
Who initiated the National Cashback programme?
“Cashback will be provided for Ukrainian-made goods, including medicines and medical devices. Cashback will not be credited for excisable goods. Participation of buyers, producers and sellers in the programme is voluntary, so the store will inform the buyer whether cashback is available for a particular product in a particular store. This can also be checked on the programme’s website.”
– said Yulia Svyrydenko, Minister of Economy, whose ministry coordinates the programme.
The madeinukraine website, where you can check the information provided by Svyrydenko, is still undergoing beta testing.
The project also involves the Ministry of Digital Transformation, JSC “Made in Ukraine”, SE “Diia”, and the State Tax Service.
Cards can already be issued at monobank, Ukrgasbank, PrivatBank, Sense Bank, FUIB, Abank, Globus Bank, UKRSIBBANK BNP Paribas Group, Oschadbank, and Accordbank. In total, 11 banks are registered in the system. Some of them also offer additional bonuses to the cashback provided by the state.
Criticism of National Cashback
Despite the fact that the National Cashback has been operating in Ukraine for just over a week, some Ukrainian think tanks believe that this programme is “financially burdensome” for the budget, and that the cashback mechanism itself is “unfair” because it is likely to operate mainly through large retail chains, which “will harm small producers and sellers”.
“In addition, the constitutional rights of Ukrainian citizens to access their private life, namely their purchases, will be violated. The unfair cashback mechanism, which operates exclusively through retail chains, will further distort the conditions of competition in the retail market, where such chains already have a dominant market power. Such a mechanism will harm small producers and retailers and thus further strengthen the market power of large retail chains,”
– said the Economic Expert Platform.
Therefore, experts recommend that the authorities abandon the idea of introducing cashback for the purchase of Ukrainian goods, which is counterproductive for the country’s economy, and focus on institutional improvements to the business environment in Ukraine, including the implementation of important projects to reboot the BES, State Tax Service, and State Migration Service.
Nevertheless, the National Cashback continues to operate, but the real result of this programme will be known only after some time.
Author: Alyona Kaplina