Business has to lose UAH 35 billion on RROs and goods accounting for the budget to receive UAH 8 billion

This was stated by Borys Emeldesh, president of the All-Ukrainian Professional Association of Entrepreneurs, at the congress “Public finance system reform – the path to Ukraine's recovery,” organized with the support of CIPE.

“The total number of FOPs (sole proprietors) reaches 2 million, of whom about 1 million had to install cash registers (RROs). According to the State Tax Service, only 327 thousand did. Entrepreneurs are ignoring this senseless rule en masse,” he said, reports FinClub.

By estimate, fiscalization of 1.18 million FOPs of the second and third groups costs UAH 10.1 billion a year.

“The costs of all FOPs for RROs amount to UAH 10 billion a year. The costs of complying with goods accounting will amount to UAH 25 billion a year. And additional budget revenues will be about UAH 6-8 billion a year. That is, for the state to receive UAH 8 billion, business has to lose UAH 35 billion. This socially negative regulation is harmful for the country as a whole,” Borys Emeldesh said.

And the tax service is unable to enforce it. “The maximum annual number of inspections over four years is 27 thousand. And there are about 700 thousand entrepreneurs who have not installed cash registers. That is, just to establish the fact of this violation, the tax service would have to work for 25 years. That task will never be accomplished,” he said.

Oleh Hetman, coordinator of the expert groups of the Economic Expert Platform, proposes replacing broad fiscalization of FOPs of the 2nd and 3rd groups with fiscalization of risk categories of taxpayers only, those with a high probability of reaching the single tax limits.