Call for Support for Small and Medium Enterprises in Frontline Territories
The Association of Frontline Cities and Communities of Ukraine has called for the formation of a systemic state policy to support small and medium enterprises in frontline territories and expressed concern about the increasing tax pressure. More than 300 participants of the Association adopted a joint statement indicating the necessity to prevent negative consequences that may arise from new tax initiatives.
Among the main threats discussed by the participants is the planned introduction of mandatory payment of 20% VAT for individual entrepreneurs with an annual turnover exceeding 1 million UAH. This decision, according to representatives of the Association, may significantly complicate doing business in frontline territories, where numerous challenges already exist due to military actions. Moreover, the automatic collection of tax debts without accounting for wartime conditions causes additional concern, as entrepreneurs cannot fully meet their obligations due to the unstable situation.
The Association calls for not allowing an increase in tax pressure on small and micro-businesses, as this could lead to even greater economic difficulties in regions already affected by the war.
Support for small and medium enterprises in frontline communities is not a concession or privilege. It is a pragmatic state decision without which it is impossible to maintain the economy, jobs, and the lives of people living close to the war.
Ihor Terekhov, representative of the Association
Proposals of the Association for Supporting Businesses
Among the Association's proposals are several key points:
- It is necessary to officially establish a special support regime for businesses in frontline communities at the state level.
- It is important to ensure the real functioning of war risk insurance and to expand frontline businesses' access to concessional lending.
- It is proposed to simplify and unify access to state support programs.
- To postpone changes in the tariff policy in the gas distribution sector.
- To introduce a separate regime for the automatic collection of tax debts.
Thus, the Association of Frontline Cities and Communities of Ukraine has expressed a clear position on the necessity of supporting businesses in wartime, which, in their opinion, is critically important for maintaining economic stability in regions that have suffered the most. Supporting small and medium enterprises in frontline territories can not only preserve jobs but also contribute to economic recovery in conditions of prolonged conflict and the unpredictable circumstances arising from the war.