Oleksandr Klymenko Official website
Digest | 393 | 26.02.2015

Ukraine is expected for price increase of goods, the growth of smuggling and deficit – Klymenko

The former minister also predicts a rise in unemployment as a result of the new tax initiatives of the Cabinet.

After the implementation of additional import duties, Ukrainians are expected for a guaranteed increase in prices of all groups of imported goods, as well as the Ukrainian goods manufactured from imported raw materials. Oleksandr Klymenko – ex-minister of revenues and duties, the founder of the public initiative «Restoring Donbas» – wrote about it on his Facebook page.

“The entrepreneur will never run at a loss, and, obviously, he will pass these costs on to the consumer’s shoulders. Nowadays, the price tags in stores are changed almost twice a day. Apparently, the government believes that citizens will not notice the excess rise in price by 10%, “- said the politician.

Klymenko also emphasized that the government has provided a 10% tax on all goods over 1 thousand euros, which are imported by citizens or are sent by air, and goods over 500 euros, which are imported via other ways.

It will primarily affect users of foreign online stores and people, who receive assistance from relatives from abroad, he said.

“It is expected that in March we will face with a sharp rise in price, or even the shortage of medicines. “Essential goods “, which can be imported without additional duty, include only medications for hemodialysis and treatment of cancer patients. All the other medicine will be taxed at an additional duty of 5-10%, if there are Ukrainian analogues,”- said Klymenko.

Politician also predicts significant growth in smuggling and an increase in unemployment “as a result of the actual collapse of certain industries related to the imported components.”

According to Korrespondent.net, on February 25, the Cabinet of Ministers of Ukraine introduced an additional fee on imports at a rate of 5-10% for 12 months.

All other goods except for “vital”, which include the majority of energy resources, as well as some medications, will be taxed at 5%.

Link to source: Korrespondent.net

Photo: facebook.com/O.V.Klymenko

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