News
07.06.2016

Expert: Existing legal provisions on licensing of economic activities should be redrafted

The meeting of the State Regulatory Service of Ukraine devoted to addressing legislative inconsistencies that arose when the Law of Ukraine “On licensing of certain types of economic activity” entered into force was held in Kyiv on June 6, 2016.

Final and transitional provisions of the abovementioned law that came into force almost a year ago – on June 28, 2015 – established that licenses on certain types of economic activity issued for a fixed period were not limited by any definite time. However, this law also says that certain economic activity types are licensed in accordance with other legal acts providing for the fixed period of the license.

In such a way, licenses that entities received before the entry into force of the current Law of Ukraine “On licensing of certain types of economic activity” are not limited by any definite time, while the licenses received after the effective date of this law have a limited duration established in special legal acts. These provisions place the business entities in the same economic activity areas in an unequal position.

“Inconsistencies between various regulatory acts that sometimes arise and place businesses in an unequal position confirm the firm position of the State Regulatory Service of Ukraine on the on-going regulatory impact analysis. Being an expert organization, we support all initiatives of the state regulator, which is responsible fulfilling its duties and engages the business, the public and regulatory policy experts into resolving the problems in the regulatory field,” the expert of the BRDO Market Surveillance and control sector Leonid Lytvynenko said at the meeting.

For the purpose to choose a common position to discuss the abovementioned conflicting legislative issue, the State Regulatory Service of Ukraine engaged representatives of licensing authorities, NGOs and experts.

As a result, they suggested several ways to solve this problem. Experts pointed out that one of the most effective ways is to develop appropriate amendments to the Law of Ukraine “On licensing of certain types of economic activity”.

The Better Regulation Delivery Office (BRDO) reminds all local business owners that according to the Law of Ukraine “On Basic Principles of State Regulatory Policy in the Sphere of Economic Activity”, the regulator should periodically monitor the impact of regulations and ensure their review. In addition, Article 6 of the Law entitles citizens to personally monitor the regulatory impact and submit proposals to revise regulations.