15:50 07.02.2020

American Chamber of Commerce urges president to veto bill with regulation of cigarettes trade margin

2 min read
American Chamber of Commerce urges president to veto bill with regulation of cigarettes trade margin

The American Chamber of Commerce in Ukraine has urged Ukrainian President Volodymyr Zelensky not to sign a bill introducing the single account for paying taxes and duties, single social security contribution (bill No. 1049) and return it to the Verkhovna Rada.

According to a statement of the Chamber posted on its website, the proposed trade margin in bill No. 1049 is bizarre for market economies and is inconsistent with many of Ukraine's international obligations.

"We are concerned about the Draft Law, which deprives companies’ the right to determine their own prices and the compulsory distribution of revenues from the sale of tobacco products among market players," the Chamber said, adding that sets a trade margin for wholesale and retail.

The Chamber welcomes the initiative of the government and the president of Ukraine aimed at finding a solution not to approve bill No. 1049.

"We support the Memorandum signed on December 12, 2019, a positive step towards further development of fair and transparent competition in the industry, combating illegal trade and tax evasion, ensuring predictability and transparency," the Chamber said.

"Paragraph 2 of Section II of the Final and Transitional Provisions should be withdrawn. We urge government authorities not to allow the deterioration of Ukraine's investment attractiveness and the economy as a whole," the Chamber said.

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