Thursday30 January 2025
podrobnosti.org.ua

It has been revealed who could benefit from the introduction of the "parcel tax."

The introduction of a tax on international parcels, which includes a reduction in the duty-free import limit, could impact market structure and benefits for various participant groups.
Стало известно, кто может получить выгоду от введения "налога на посылки".

This is reported by RBK-Ukraine referencing a comment from investigative journalist Yevhen Plinsky. This information is also provided by Kontrakty.UA.

"When the authorities claim that the tax on parcels is intended to protect Ukrainian businesses, one must clarify what is meant by the term 'Ukrainian business'? Is it about the retail of 'buy-sell Chinese goods' or about a real manufacturer in Ukraine that produces a product with added value and possesses genuine production capacities, rather than just warehouses for storing Chinese goods?" - the journalist points out.

According to him, Ukrainian "resellers" of cheap Chinese goods should compete for the buyer's money not only through restrictions and aggressive marketing but also with reasonable pricing.

Ukrainians have learned to purchase goods directly from China, Britain, and the USA, which poses a problem not for actual Ukrainian manufacturers but for the segment of the business built on the resale of Chinese products that seeks to maintain a monopoly on this resale.

"Why should a Ukrainian buyer, upon seeing that the same product costs three to five times more in Ukraine than in China, buy it here from a reseller instead of where it's cheaper? With great respect to 'Rozetka', 'Aurora', and the monopoly of 'Epicenter', this model of resale platforms predominantly for Chinese goods cannot be equated with businesses that genuinely produce and truly require state protection," - the journalist emphasizes.

He states that this 'buy-sell at inflated prices' business, defending its operational model, advocates for the introduction of parcel taxes through various business associations, as they need to limit direct access for Ukrainians to inexpensive goods abroad and sell the same Chinese products at higher prices in Ukraine.

According to the author, out of a total of 73.5 million parcels, 99% fall under the low-cost parcels below the tax-free limit of 150 euros (72.9 million amounting to nearly 59 billion UAH). This accounts for less than 50% of the total sum. The average value of such parcels is 800 UAH. The remaining 1% by quantity (601,000 parcels) accounts for 61.6 billion UAH. Thus, the average value of each is approximately 102,000 UAH, which significantly exceeds the tax-free limit.

"It turns out that 1% of parcels in monetary terms constitutes more than 50% of the total sum and consists of truly expensive shipments that are taxed at a rate of 10% customs duty plus 20% VAT. Therefore, the state already receives its 32% from the amount of 61.6 billion UAH, which totals 19.8 billion UAH. Now, by lowering the VAT threshold to zero, the authorities plan to tax the cheap segment of international shipments, which makes up 99% by quantity but less than 50% by value," - he explains.

Instead, the state should combat smuggling and gray and black markets, which cause much more harm to the budget than the hypothetical 'parcel tax' could bring. Additionally, inspecting over 73 million parcels entering Ukraine in 2024 would lead to a collapse of customs and postal services, completely paralyzing them.

"Currently, 92% of parcels via 'Ukrposhta' have a value of less than ten dollars. Can you imagine that it would take one customs officer and two postal employees, along with a dozen sheets of paper and hours of time and inspections for each one?" - he adds.

It is worth noting that in August 2024, the Cabinet of Ministers already proposed reducing the price threshold for duty-free parcels from abroad - from the current 150 euros to 45. They also suggested introducing VAT for all orders from foreign online stores.

This initiative was included in a large tax increase bill. However, the first vote in the fall failed, after which parcel taxes were decided to be separated into an individual bill.