What is the suffering of the Ukrainian people?

What is the suffering of the Ukrainian people?

The total lack of professionalism, adventurism and populism of the Ukrainian government and the National Bank led to a terrible state of the Ukrainian economy, to the poverty of our citizens. The main reasons for what is happening in the absence of a really calculated strategy for the development of the economy of our state.

The government’s actions are clearly corrupt and populist. Corruption can be traced to the fact that unjustifiably, voluntaristically, energy prices were increased by 6 times or more, that is, gas and electricity. This caused, in fact, the bankruptcy of chemical enterprises in Ukraine, a sharp decline in the profitability of metallurgical and machine-building enterprises. The rise in prices, respectively, for mineral fertilizers, combined with the predatory growth of fiscal pressure on enterprises of all forms of ownership, both industrial and agricultural, has led to the fact that honestly operating enterprises are already becoming unprofitable. Ie, in the next six months, not only small entrepreneurs will start to stop their work, but most of the previously stable agrarian farms of the average level, and this will also cause heavy losses for large agribusiness producers.

Unreasonably raised prices for energy carriers led to a sharp rise in prices for housing and communal services. In addition to plundering the Ukrainian economy, the Government began to plunder its own people, living mostly in poverty. The system of so-called subsidies, when the state directly pays for energy resources to power generating companies owned by oligarchs close to the authorities, in fact represent a scheme for stealing the money of taxpayers through payment for the multiply inflated prices of budget money to their own oligarchs. The people do not even understand that under the guise of helping the poor, their money is stolen and dubbed between the participants of the scheme: the government is the oligarchs owning energy-generating companies.

Populistic actions of the Government in the form of a twofold increase in the minimum wage up to UAH 3200. in fact, led to mass closures of small and medium-sized entrepreneurs, a reduction in jobs in almost all enterprises, non-payment and reduction of budgetary expenses for scholarships to students, a reduction in medical institutions, as a consequence, further reduction of medical personnel, a sharp deterioration in the capacities of the population of villages, urban-type settlements in obtaining emergency and other qualified medical care.

In addition to the above innovations, the Government of Grojsman and Poroshenko since the new year 2017 has increased even more than from the beginning of 2016 tax extortion from industrial and agricultural enterprises. So, in the agrarian sector, the benefits were abolished even, at least, for partial compensation for the value-added tax. The cadastral value of land plots is unreasonably increased in order to increase in absolute terms the rent for the land and, accordingly, to increase the size of income tax and military levy from this rent.

At the same time, the Government of Yatseniuk and Groisman introduced so-called tax invoices for the value-added tax, which must be submitted no later than 15 days before the end of the current month. As a result of these manipulations, all sales VAT that are produced by enterprises in the second half of the month is deliberately counted in the concept of & laquo; tax liability & raquo; and must be paid to the budget even if the costs of the enterprise for the purchase of inventory are almost equal to the sales volumes . Thus, the Government unhesitatingly takes huge amounts of money from enterprises that are equal to VAT obligations for the last half of the previous month and uses this money all next month. At the same time, sharply reducing the volume of circulating assets of agro-enterprises. As a result of these, in fact, fraudulent schemes, all agricultural producers incur huge losses.

To date, agro-industrial enterprises are forced to pay value-added tax not only from wages, but from all taxes on wages (a single social contribution, income tax, military duty), which is plus a salary of about 50% of additional costs. In addition, agricultural producers additionally pay VAT on rent and taxes on this rent (income tax and military charge).

In addition to such innovations, the refinements of our Jesuit Government are also extended to the return of value added tax for the export of agricultural products. Ie, when exporting products directly from the agricultural producer to him, even theoretically (not to mention the virtually unrealistic possibility of receiving a VAT refund), not all the value-added tax is paid back from the price of selling agricultural products, but only the amount of VAT only on those commodity-material assets that are spent in the production of a particular type of product (ie VAT on the purchase of fuel, fertilizers, herbicides and equipment with spare parts). But the company’s expenses incurred by him for paying a salary together with huge taxes on this salary, as well as expenses for rent payment and taxes on this rent, general economic expenses are not taken into account and are not subject to return to agricultural producers. Thus, agricultural enterprises can even theoretically receive a refund of not 100% of VAT, but somewhere not more than 30% of that amount! In addition, all tax inspectorates were given an unofficial order to conduct severe inspections to those enterprises – agricultural producers, who, when exporting their products, require a legal VAT refund! Tax authorities established a rule that the amount of fines in relation to such enterprises should at any cost be counted in an amount exceeding the amount of that VAT, which the enterprise legally asks for compensation. The forms of tax pressure on agricultural enterprises are especially cruel, since it is the only sphere of the Ukrainian economy that has worked effectively in our country.

The government’s attempt to stay in its seats on numerous corruption schemes at the expense of its own people and all, without exception, industrial and agricultural enterprises, in conditions when all foreign creditors and the Parliamentary Assembly of Europe refuse to provide new even predatory (because of total corruption in the country) loans, leads to a total collapse of the economy of our country. The collapse of the Ukrainian economy is also accelerating due to the sophisticated, also corrupt, activity of the National Bank of Ukraine. As a matter of fact, there is a deliberate destruction of “foreign” & raquo; banks, and their collateral property is sold under corrupt schemes with huge kickbacks through a system of state enterprises designed, allegedly, to compensate depositors of banks the amounts lost by them. To date, citizens of Ukraine from such a collapse of the banking system have lost more than 100 billion UAH., And legal entities, enterprises of the industrial and agricultural sector, have lost much more than 150 billion UAH.

This is not a complete list of the “benefits” committed by the Government and the National Bank of Ukraine under the leadership of the President of Ukraine and the incompetent parliament, consisting of 80% of scammers, crooks and semi-literate and uncultured “elected” people!

Silent people, like silent lambs, generate a government of wolves!

Public figure, academician
and Vice-president of the Academy of Economic Sciences of Ukraine

Anatoly Peshko

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