The economic recovery of Ukraine after the large-scale military aggression of the Russian Federation is an urgent need to ensure the country’s sustainable development and integration into the European space. In this regard, Ukraine and the European Union should unite their efforts to create a favourable business environment that will allow the Ukrainian economy to recover quickly, attract investment, and ensure sustainable development.
White Paper – Proposals of the European Business Association for the economic recovery of Ukraine and its integration into the EU single market – outlines the key challenges faced by businesses in critical sectors of the economy, such as taxation, trade, energy, and agriculture. The suggested changes are aimed at strengthening transparency, combating the shadow economy, introducing tax incentives, and modernizing the legislative framework.
This document contains recommendations on the key reforms necessary for the stabilization and recovery of the Ukrainian economy. The main focus areas of this document are tax policy, HR, import, trade, energy, and agriculture:
1) Tax Reform:
Problems of taxation of individuals: There is a need to reduce the tax pressure on individuals and introduce tax incentives for households. Currently, the system raises questions about its fairness, which creates conditions for tax evasion.
Taxation for Ukrainians abroad: In connection with migration due to the war, it is important to avoid double taxation of Ukrainian citizens and to coordinate their tax residency status with other countries.
Transparency in CFCs and transfer pricing: It is important to adopt comprehensive tax advice to address issues with controlled foreign companies (CFCs) and transfer pricing.
Combating smuggling and the shadow economy: Strengthening the fight against the illegal market and the unshadowing of the Ukrainian economy as a whole is proposed.
2) Energy and Ecology:
Proposals for the development of green energy: It is necessary to develop laws and regulations that will contribute to the development of green energy and the integration of Ukraine into European energy markets.
Energy efficiency: Investments in projects related to increasing energy efficiency will be able to reduce energy resource costs and reduce Ukraine’s dependence on fuel imports.
Green transition and protection of domestic producers: Introduction of an emissions trading system in Ukraine, taking into account European experience and military realities, defending the position on the release of Ukrainian exporters to the EU from the Carbon Border Adjustment Mechanism (CBAM), reforming the waste management sector, and introducing the principles of a circular economy.
3) Agriculture:
Investments in the restoration of the agricultural sector: Measures are needed to increase agricultural productivity, in particular by modernizing infrastructure and providing tax incentives for farmers.
4) Human Resources and Reconstruction:
The problem of labour shortage: The war and migration processes have led to a significant reduction in the labour force in Ukraine, which poses risks to the rapid economic recovery. It is important to develop a comprehensive programme for the reintegration of IDPs and veterans, improving the skills of employees, and encouraging the return of Ukrainians from abroad.
Education and training of personnel: It is necessary to invest in training programmes and professional training to provide business with qualified personnel, especially in areas of strategic importance for the reconstruction of the country (construction, energy, infrastructure).
Pension reform: The introduction of a sustainable pension system is an important element for ensuring social stability and supporting older segments of the population, which can contribute to reducing labour migration.
In general, the document emphasizes the need to improve the current legislation, ensure the transparency of the business environment, and introduce incentives for economic recovery under martial law and post-war reconstruction. Timely and effective implementation of these reforms is key to Ukraine’s recovery, attracting foreign investment, and ensuring sustainable development in the post-war period.
Only through joint efforts and decisive steps will we be able to build a successful future for Ukraine as an equal member of the European community.
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