Increase in national cashback due to new taxes: MP explains the “generosity” of the Cabinet of Ministers
17 February 17:25
The new “National Cashback” model, adopted by the government the day before, was called another dose of populism by Nina Yuzhanina, a member of parliament from the European Solidarity party, according to Komersant.
The MP noted that the program is being financed simultaneously with work on an initiative to introduce VAT for sole proprietors, increase military tax, and tax parcels and sales of goods on digital platforms, which creates an excessive tax burden on business.
“Do you feel the power of the government’s STRATEGY? Introduce VAT for sole proprietors – to increase CASHBACK Set a permanent 5% military tax – to increase CASHBACK Tax parcels from 1 hryvnia – to increase CASHBACK Tax the sale of used items to increase CASHBACK Simply at the expense of (mainly self-employed individuals – entrepreneurs) – such “generous” decisions! Unfortunately, neither the lack of money nor underfunded defense will change these populists,” Yuzhanina wrote on Telegram.
The Cabinet’s decision was also criticized by Yaroslav Zheleznyak (Voice faction), who called the continuation of the “National Cashback” program a manifestation of populism against the backdrop of a budget deficit for defense.
The day before, the Cabinet of Ministers updated the National Cashback program. Starting March 1, buyers will be able to receive 5% or 15% cashback for purchases of Ukrainian-made goods, depending on the share of imports in this category. Previously, the cashback was 10%.
The government said that 15% cashback will be credited for Ukrainian goods in categories where imports in the consumer basket exceed 35%. These include cosmetics, stationery, clothing and footwear, pet products, and certain foods (hard and soft cheeses, some types of pasta and cereals).
At the same time, a 5% cashback will be applied to Ukrainian goods in categories where imports in the consumer basket are less than 35%. These include bread, meat, dairy products (except cheese), eggs, oil, vegetables, fruits, fish, canned goods, sweets, snacks, beverages, sauces, as well as medicines and gardening products.
