In Ukraine, the introduction of the national cashback program, which provides for the return of a part of consumer expenses for purchases, caused a wide discussion. However, the economist warns that the new initiative may become a source of serious corruption. The main problem, according to experts, is the ability of officials to influence decisions about which enterprises and in what amount cashback will be provided.
Economist Danylo Monin expressed fears that the "National Cashback" program was created as another corruption scheme that will make officials very rich. He explained the essence of a possible scheme.
"First, it is necessary to make Ukrainian manufacturers uncompetitive by raising the cost of electricity and loans, and then install an official who will decide how much cashback to return to which company. And the trail of Kesh's suitcases will flow to the officials to return some of the money back. Now just imagine the alternative - lower taxes, which make Ukrainian manufacturers more competitive without an official. In the first case, the official will receive the main profit, in the second - a businessman who will invest this tool in development or increase the salary of his employees, additional additional value will be created. But socialism produces only corruption," Danylo Monin wrote.
How much will the state budget spend on the "National Cashback" program
Considering the proposed volume of state budget expenditures for the "National Cashback" program in 2025 in the amount of UAH 6 billion, the average monthly cashback may amount to about UAH 500. This was announced by the Ministry of Economy. The agency stressed that they do not expect the state's expenditures on the program to exceed the 3 billion UAH set for 2024.
"It is estimated that the average amount of cashback can be about UAH 500 per person at the stage when a significant number of producers will already fully participate in the project. In the first months, we expect less due to the gradual joining of manufacturers," the ministry said .
Thus, given the compensation under the state program in the amount of 10% of the cost of purchased goods of domestic manufacturers, according to the ministry's expectations, on average, program participants will buy Ukrainian goods worth UAH 5,000 per month.
What about tax increases?
On Tuesday, September 3, the Parliament supported the introduction of amendments to the 2024 state budget with the aim of increasing expenditures in the security and defense sector by UAH 495.3 billion. At the same time, parliamentarians sent the draft law on amendments to the Tax Code, which is systemically related to changes to the state budget, for a second first reading. The Ministry of Finance called on parliamentarians to raise taxes.
On August 29, the Finance Committee recommended that the Verkhovna Rada adopt as a basis the revised draft law N11416-d on amendments to the Tax Code of Ukraine regarding the peculiarities of taxation during the period of martial law. The revised draft law envisages, in particular:
- increasing the military tax rate from 1.5% to 5%;
- establishing a military levy in the amount of 1% of income for payers of the uniform tax of group III;
- establishment of military levy for FOP - payers of the uniform tax of groups I, II and IV at the level of 10% of the minimum salary. It was determined that the established features of taxation by the military levy will be in effect until December 31 of the year in which martial law will be terminated;
- setting the corporate income tax rate for non-bank financial institutions (except insurers) at 25%;
- improvement of the proposed model for determining the amount of advance payments for the purpose of taxing the profit of enterprises that carry out retail trade in fuel;
- monthly submission of reporting on the amounts of income accrued (paid) in favor of taxpayers - natural persons, and the amount of tax withheld from them, as well as the amount of the accrued single contribution.
Other problems with the "National Cashback" program
In the resolution of the Cabinet of Ministers of Ukraine dated August 20, 2024 No. 952, the conditions of the "National Cashback" program are prescribed. To participate, the buyer must:
- go to the website (mobile application) or contact the branch of the authorized bank(s) to submit an application for participation in the experimental project, which contains the following information: surname, first name, patronymic (if available); date of birth; registration number of the taxpayer's account card; numbers of the current account(s) (according to the IBAN standard), payment transactions that will be analyzed for compliance with the requirements of the experimental project;
- grant permission to provide information to ensure compliance with the provisions of the Law of Ukraine "On Banks and Banking Activity" regarding bank secrecy , consent to the transfer of information about payment transactions from selected current accounts to the information system for providing the electronic public service "Cashback "Made in Ukraine" in the form , determined by the authorized bank, and permission to process personal data;
- open a special account for crediting cashback;
- install the Diya portal mobile application on an electronic device, the technical parameters of which support its use, and undergo electronic identification and authentication;
- select the “Made in Ukraine Cashback” service in the Diya mobile application. The results of information processing for receiving state financial assistance (cashback) are displayed in the Diya mobile application.
That is, participants of the "National Cashback" program agree to provide access to their bank accounts. It should be added that in March 2024, the National Bank of Ukraine updated the rules for the storage, protection, use and disclosure of bank secrecy, taking into account the changes to the Law of Ukraine "On Banks and Banking Activities", which were adopted by the People's Deputies in November 2023. The procedure for disclosing bank secrecy about customer accounts has not undergone any changes. Banks will continue to guarantee the secrecy of the bank account, account transactions and information about the client. Information about transactions, bank accounts or payment cards, as before, can be provided by the bank exclusively:
- to the clients themselves (their representatives),
- by court order,
- law enforcement or state bodies that have the relevant powers, but only in the cases, in the manner and to the extent established by the Law of Ukraine "On Banks and Banking Activities".
