December 22, 2024
The budget lacks billions, and local business works in unequal conditions: what is the danger of parcels from China thumbnail
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The budget lacks billions, and local business works in unequal conditions: what is the danger of parcels from China

Every year, the number of international postal shipments to Ukraine increases by 50%. In 2022-2024, most of them (62%) came from Chinese marketplaces AliExpress, Cainiao, Temu, Yanwen, Taobao and others,…”, — write: www.unian.ua

The budget lacks billions, and local business works in unequal conditions: what is the danger of parcels from ChinaEvery year, the number of international postal shipments to Ukraine increases by 50%. In 2022-2024, most of them (62%) came from Chinese marketplaces AliExpress, Cainiao, Temu, Yanwen, Taobao, and others, which are sure to capture the world markets.

Parcels from abroad with a value of up to 150 euros are not subject to VAT or customs duties. According to the State Customs Service, almost 52 million parcels were imported into Ukraine in 2023. At the same time, the value of 51.5 million of them did not exceed the tax-free limit of 150 euros. Currently, taxes are paid on only 1% of international parcels imported into Ukraine.

The Institute of Socio-Economic Transformation (ISET) is convinced that tax breaks for international parcels should be minimized throughout 2025. After all, we are talking about two main problems, the first of which is the lack of tax revenues. According to estimates of the Ukrainian Business Council, which unites 117 business associations, the current tax benefits cost the state budget at least 7-9 billion hryvnias per year.

Oleg Hetman, coordinator of expert groups of the Economic Expert Platform, believes that the losses are even greater, because the volume of tax-free parcels is growing every year.

“In 9 months of 2024, 54 million parcels worth UAH 89.3 billion were imported into Ukraine. Based on the value of the shipments and the forecasted volumes, revenues to the budget for the year could amount to UAH 11.8 billion. This is if there were no relief in the taxation of parcels worth up to 150 euros”, Oleg Hetman noted.

The budget lacks billions, and local business works in unequal conditions: what is the danger of parcels from ChinaSecondly, it is about the survival of Ukrainian manufacturers and retailers, who, unlike Chinese sellers, pay all taxes, create and support jobs, and still work without electricity and in constant danger.

Currently, the Verkhovna Rada is preparing a draft law on taxation of international parcels worth up to 150 euros. It is about charging 20% ​​VAT on the total amount of parcels. An exception is offered for parcels of a non-commercial nature – personal shipments from abroad with a value of up to 45 euros.

The authors of the initiative add that the influx of goods from China deprives Ukrainian light industry of its chances for development. Goods that do not require high technology, such as kitchen utensils, shoe insoles or hair accessories, could be produced in Ukraine. But if the company produces analogues of Chinese goods, then again it finds itself in unequal competitive conditions. After all, a Ukrainian entrepreneur is not subsidized by the government, as is the case in China, and cannot buy in bulk. At the same time, buyers are financing Chinese manufacturers who do not help the economy and the military in any way, and also push local manufacturers and retailers out of the market.

The reduction of benefits would also help fight against the so-called “gray” businesses of Ukraine. We are talking about entrepreneurs who “break” batches of goods into small parcels, worth up to 150 euros, in order to avoid taxation.

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