Businessmen caution government against adoption of bill on domestic trade

Kyiv, February 13 (Interfax-Ukraine) – Representatives of Ukrainian associations and unions of businessmen oppose the adoption of a draft law on domestic trade because of risks that trade could be monopolized by large retail chains while small- and medium-sized businesses may be ousted from commerce.

A draft letter addressed to Ukrainian Prime Minister Mykola Azarov with the request to prevent the adoption of the bill has already been prepared, members of businessmen's initiative group announced at a press conference at Interfax-Ukraine on Wednesday.

"Our firm belief is that the said bill shouldn't be passed at all, as domestic trade is already legislatively regulated – both by the Commercial Code and the Tax Code. We see no need for additional regulations, which bring over-regulation of entrepreneurship," said President of the Association for Protection of Entrepreneurship Serhiy Dorotych.

According to the businessmen's address announced at the press conference, the bill foresees the creation of new regulators, introduces additional forms of reporting and penalties, as well as requirements for the qualification of employees in the retail and hospitality sectors, as well as for retail premises selling certain types of products.

Entrepreneurs claim that the provision of the law that a separate room should be given for the sale of beer, alcoholic beverages and tobacco "is absurd," as it will make small shops and kiosks close.

Entrepreneurs also criticize the provision that allows local governments to set the working hours for retail outlets.

Readiness to sign the letter addressed to the premier has been shown by the Union of Entrepreneurs, Medium, Small and Privatized Enterprises of Ukraine, the commerce commission under the Regional Council of Entrepreneurs in Kyiv, the Ukrainian League of Industrialists and Entrepreneurs, the Association for Protection of Entrepreneurship, and other public organizations and business associations.

As reported, draft law No. 9443 on domestic trade, drawn up by the government, was registered in parliament on November 10, 2011.

The bill in particular introduces a ban on online and remote trade in pharmaceuticals, suggests administrative responsibility for violation by restaurants and cafes of the existing rules of trade for catering businesses.

According to the draft, a new requirement on trade space for tobacco could be set (apart from special warehouses, stores, departments and sections) – 100 square meters, while the present law permits an area of from 20 square meters.

The draft foresees amendments to the Administrative Infringement Code, the law on pharmaceuticals and the law on the state regulation of production and turnover of ethyl, cognac and fruit spirit, alcohol and tobacco.

Premier Mykola Azarov on, January 9, 2013, instructed Economic Development and Trade Minister Ihor Prasolov to finalize the bill on domestic trade within one month.