Delays in the National Cashback: why millions of Ukrainians have not yet received their payments
10 March 12:25
ANALYSIS
Less than six months after the National Cashback Program was launched in Ukraine, difficulties have already arisen. Ukrainians participating in this program are owed a considerable amount for December and January, and this is despite the fact that February has already ended. What went wrong with the national program created to support the national producer,
On September 2, Ukraine launched the National Cashback program, according to which a participant, a Ukrainian consumer, received 10% of the cost of Ukrainian goods. The maximum amount that a buyer participating in the program could expect was up to UAH 3 thousand per month. The accumulated and paid cashback amount could be checked in the Diia app.
The program applies to almost all Ukrainian-made goods: from milk to sofas. The exception is excisable goods (alcohol, tobacco, fuel, etc.). Cashback can be spent on medical services, sports, movies, catering, utilities and mobile communications, donations to the Armed Forces of Ukraine, etc.
Follow us on Telegram: the main news in a nutshell
The program’s participants include large supermarkets, pharmacies, non-food and food manufacturers, and individual entrepreneurs.
According to the Ministry of Economy, 1,740 manufacturers have participated in the National Cashback program, offering more than 370,000 items at 30,000 outlets. And 10.3 million Ukrainians have already registered and received UAH 1.6 billion in cashback.
It sounds like a good idea – you buy Ukrainian goods, get bonuses, which you can then spend on some goods made in the country. But there was a fly in the ointment. Delays in payments began in December, and in January of this year, the participants also received nothing. February is already over, and there is complete silence with payments. But recently, the Ministry of Economy hastened to reassure and ask to wait a little longer, saying that they have already found the necessary amount.
“We understand that many Ukrainians are waiting for the cashback payment, which usually comes on the 20th of the month. For many, it is a financial support. All payments will be made in full in the near future. 3.4 million Ukrainians will receive UAH 714 million in cashback for December and January. The government has already allocated the necessary funds, but the operational processes take a little longer than we expected. As soon as we know the exact date of crediting the funds, we will immediately inform you about it,” the Ministry of Economy said.
No one has calculated the required amount of money
And, as noted in the commentary
“Problems with this program arose long ago, when Finance Minister Marchenko said he did not know where to get the money for this program. But it was launched anyway. Moreover, as conceived by its creators, the government promised to cover the costs of program participants who accumulate a certain number of virtual units equal to the hryvnia, up to 3,000. And if someone wanted to convert these virtual units, the government promised to issue them, but again, for the purchase of national products according to a special list approved by the Cabinet of Ministers. This is a very complicated system and, as a complex program, it has a lot of weaknesses,” believes Yuriy Havrylechko.
But, according to the expert, in fact, the National Cashback has become something of a lottery, as there is no guarantee that these expenses will be covered. And now there is no money. Because the necessary amount of money was not allocated for this program, and it was difficult to predict it – it is very difficult to imagine how many people will use this program, how much they will spend on goods. There is too much variation to predict. And this is a problem with the conditions of this system.
Follow us on Telegram: the main news in a nutshell
“It could be theoretically assumed that all cardholders of participating banks would join the program and spend the average salary on Ukrainian goods and accumulate 3,000 eBalls, then they would have to be compensated. And this maximum amount of budgetary expenditures could have been included in the cashback. But no one did this. So it turns out that the participants should have received nothing,” says Yuriy Havrylechko.
The purpose of cashback is to collect customer data
According to the economist, the idea itself is also a bit of a bust, as the program has made producers neither hot nor cold. Theoretically, it can be assumed that this is how they wanted to encourage Ukrainians to buy more domestic products, but this requires that domestic producers cover imports and that our goods are much better than imported ones and are cheaper.
“Today, Ukrainians prefer imported goods in order to save money, which are often cheaper, better in quality, and with more choice. Given that more than a third of Ukrainians live below the poverty line, they will choose cheap goods now rather than some cashback in the future. In order for this program to work, there must be a sufficient assortment of high quality products that are cheaper than imported ones,” emphasizes Yuriy Havrylechko.
In fact, as the economist emphasizes, this program has fulfilled its function. Because under the agreement with the participating banks, by agreeing to this program, you agree to monitor all purchases and transfer the information collected to third parties. And not to return money for purchases.
To join the program, you need to
- open a special account with the bank – in the app, on the website or in a branch;
- select the National Cashback service in the “Actions” menu;
- connect and activate the card to which compensation is to be credited;
- purchase goods from Ukrainian manufacturers participating in the program in participating stores using a registered bank card.
Follow us on Telegram: the main news in a nutshell
Author: Alla Dunina
