In order to discuss with the industry associations the directions of state support in 2020 (02/01/2020) GS "Ukrainian Association of Manufacturers of Electrical Engineering" submitted to the Ministry of Development of Economy, Trade and Agriculture of Ukraine the following proposals for state support in 2020 of the manufacturing enterprises of the electrical industry that will increase value added and create jobs.
1) Implementation of a five-year program for compensation of interest rates on credits for the purchase of all equipment - for new plants put into operation from 01.01.2020 and for existing manufacturing enterprises that purchase equipment for the purpose of modernization of the production process starting in 2020. should be no more:
- UAH 10 million per enterprise per year,
- 50 thousand UAH per year for each employee,
- 70% of the total annual interest paid to the bank for the equipment purchased.
Financing amount - 2.5 billion UAH.
Against the background of unjustifiably high interest rates on bank loans, the industry is declining. Most production facilities need upgrading. Manufacturers find it difficult to compete in the global market with foreign producers who have cheap credit and government support, so the introduction of this program is a matter of survival for most businesses. In EU countries, compensation reaches 70% of the cost of the equipment itself. The interest rate compensation program will help to open new industries, upgrade the facilities of existing businesses and encourage employers to create new jobs, increase wages, which in turn will reduce migration.
2) Introducing a “0” VAT rate on non-manufactured equipment in Ukraine and a “0” duty rate on accessories under the same conditions.
Financing amount - 150 million UAH.
According to the State Statistics Service of Ukraine, since June 2019, industrial production has fallen. The support of this proposal will significantly improve the current situation of manufacturing enterprises, facilitate the opening of new enterprises for the production of equipment and components, the creation of industrial clusters.
3) Simplifying the procedure for imposing an anti-dumping duty on finished products manufactured in Ukraine in accordance with the WTO. The support of this proposal will help to fill the budget, significantly improve the current situation of manufacturing enterprises and lead to their prosperity in the future. It does not need funding, it needs political will. Filling the budget, supporting the national producer, increasing production capacity of the goods.
4) To oblige the State Consumer Service to prevent the sale of goods that do not meet the national quality requirements.
It does not need funding, it needs political will.
It is proposed to prevent the import into Ukraine of goods that do not meet national quality requirements, are dangerous and pose a threat to the life and health of Ukrainian citizens. To do this, it is necessary to strengthen the control of the State Consumer Service and to apply radical methods in case of violations.
5) Adoption of a decree on the admission to Prozorro auctions only of VAT payers.
It does not need funding, it needs political will.
Adoption of this resolution will equal the conditions of tenders, increase budget filling, reduce smuggling and shadow economy, create new jobs.
6) Adoption of the bill of the corresponding Eurodirective N 32011L0007 on limitation of payment deferrals up to 60 days for online stores.
It does not need funding, it needs political will.
Adoption of the bill will lead to an increase in domestic production (since unlike Western producers we do not have long and cheap loans) and the main thing is to reduce prices for consumers, since all suppliers put in the price inflation, high interest rates in long deferred payments and goods for sale .
Acceptance and implementation of these proposals will significantly improve the socio-economic situation in the country as a whole.
