Simplify state regulation for sellers of alcohol and tobacco – such a decision was made by the IWG on deregulation following the results of a regular meeting.
What exactly is recommended to be optimised?
Digitize obtaining licenses for wholesale and retail trade in alcoholic and tobacco products and electronic cigarettes. Applying for a license will be possible through Action. The term for obtaining a license will be reduced from 10 days to 1 day.
When it will be implemented, the risks of illegal trade and illegal licenses will be taken into account.
In addition, today at the meeting of the Interdepartmental Working Group on Deregulation, it was decided to additionally work out the expediency of drawing up acts of completed works for entrepreneurs.
Previously, the practice, unique only to post-Soviet countries, caused inconvenience in document circulation with foreign countries and required expenses for the preparation of redundant documentation. According to CASE Ukraine estimates for 2021, our economy lost up to UAH 34 billion or 0.6% of GDP due to this requirement every year.
This was the first meeting of the IWG regarding the consideration of regulatory instruments that are under the care of the Ministry of Finance. Some of the permits and licenses will be processed at the next meeting. In particular, the question will be raised regarding:
- Simplification of activities of small producers of beer and other fermented beverages. The IWG made its decision in this regard in response to a request that the Government received from a specialized association of manufacturers. The deregulatory reform will make it possible to implement the following initiatives demanded by business:
1. Reduction of excise duty by 50%;
2. Cancellation of compulsory licensing of wholesale beer trade for small producers;
3. Establishment of an unlimited term of validity of the license, etc.
We would like to remind you that BRDO’s “Regulatory Policy” sector studied the market of Ukrainian fermented beverages in 2020, and also held numerous consultations with brewers. Based on the results of the analysis, we created the Green Paper “Analysis of the Market of Fermented Alcoholic Beverages”.
If you also represent a business that has specific initiatives, the adoption of which will facilitate the development of entrepreneurship in your industry, please fill out the form on the website https://deregulation.me.gov.ua. The government needs feedback from business in order to implement deregulation reform more effectively.
In total, 45 regulatory instruments in the sphere of competence of the Ministry of Finance were reviewed today at the meeting of the working group. 30 of them decided to optimize.
In just 5 months of the deregulation reform, the Government reviewed more than 800 instruments for regulating business operations. The IWG, created in January 2023, includes, in particular, representatives of the ministries of the economy, digital transformation, protection of the environment and natural resources, justice, finance, and the regulatory service.
With the support of the USAID Program “Competitive Economy of Ukraine”, BRDO prepares analytics on the feasibility of maintaining or canceling regulations, participates in meetings of the IWG and the development of relevant regulatory and legal acts.