This initiative aims to boost the purchase of domestically produced goods and services.
Current Progress and Upcoming Plans
According to Yaroslav Zheleznyak, a member of the "Voice" faction, the First Deputy Prime Minister and Minister of Economy of Ukraine, Yulia Svyridenko, shared these updates during the "Question Hour for the Government" in the Verkhovna Rada. Zheleznyak reported via Telegram that:
Normative Document Development: Work is underway on the normative document that will outline the specifics of the cashback mechanism. This document is expected to be ready within a month, with the official launch of the program anticipated for September 1, 2024.
Updates to Reservation Resolution: Preparations are being made to update the reservation resolution, aiming to facilitate the program's smooth implementation.
Legislation on Electrical Equipment: During the next plenary session, there will be a vote on a law that seeks to exempt electrical equipment from customs duties and VAT, which could support the "Buy Ukrainian" initiative.
Financial and Economic Measures
Zheleznyak also mentioned other significant financial measures, including:
US Loan Agreement: An agreement for a $7.8 billion loan from the United States is nearing finalization. The Prime Minister has communicated with the US Treasury regarding four tranches, each worth $1.95 billion.
Reform Negotiations: While negotiations on a list of reforms are ongoing, specific details were not disclosed by the Prime Minister.
Criticisms and Support
The "Buy Ukrainian" program, announced by President Volodymyr Zelenskyi in February, aims to incentivize the purchase of Ukrainian-made products through cashback rewards. However, several analytical centers have criticized the program, highlighting concerns over its financial burden on the state budget and the complexities involved in its administration.
Conclusion
The upcoming launch of the "Buy Ukrainian" cashback mechanism marks a significant step towards promoting domestic products and services in Ukraine. As the program progresses, it will be crucial to address the financial and administrative challenges to ensure its success and sustainability. The finalization of supporting legislation and financial agreements will play a pivotal role in the effective implementation of this initiative.
