On March 12, Ukraine, together with the whole world, has begun its fight against the global pandemic of the COVID-19 virus.

No one can say for sure how long this fight will last until the final overcoming of the coronavirus. Also, no one can say what the price of human lives and economic indicators will be. Almost the first time in recent centuries, the world has come face to face with something nameless and at the same time dangerous. And in any situation, you need to maintain common sense and think about how to maintain the viability of the economy so that it meets its main requirements. We, as representatives of the business environment, are not able to stay away from these challenges.

Aware of the full responsibility to society, the Ukrainian Association of Furniture Manufacturers, together with the state, should become side by side in the prevention and solution of many problems that the Ukrainian economy may face. It is important for us to keep the balance of economic processes to the maximum to maintain the economic well-being of citizens.

Undoubtedly, business and government representatives should pay special attention today to those process factors that could affect the formation of a new economic crisis, which could result in bankruptcy of medium and small enterprises due to lack of financing, will certainly affect the payment of taxes, rents, wages wages to workers, there will be reductions, mutual debts for short deliveries of goods and improper performance of services will increase. But it is necessary to make every effort to prevent this.

Commission for the preservation of the furniture industry of the Ukrainian Association of Furniture Manufacturers in dialogue with the government and the Verkhovna Rada of Ukraine

The Ukrainian Association of Furniture Manufacturers represented by the Directorate, the heads of certain specialized platforms, members of the Management Board and the Revision Commission are conducting a dialogue with representatives of the legislative and executive authorities of Ukraine in order to create the most favorable conditions for preserving the furniture industry in Ukraine in the context of the COVID-19 virus epidemic.

The chairman of the lobbying and advocacy platform is negotiating with representatives of the State Customs Service of Ukraine regarding the unhindered crossing of Ukraine’s borders with goods with furniture, materials and components in order to support furniture production.

During the declared quarantine, the work of the domestic furniture market has been practically blocked, which led to the forced closure of retail chains, as well as the shutdown of production processes in factories. The head of the retail platform and Member of the Management Board of UAM, Andrii Kolesnyk, together with the President of UAM, Volodymyr Patis, are in dialogue with representatives of State Labour Service of Ukraine authorities in order to receive clarifications and support for the implementation of measures to preserve jobs for enterprises and protect the business interests of the furniture industry.

The chairman of the supplier platform, Mykola Viknyansky, and the member of the Audit Commission of OAM Oksana Donska are preparing legislative initiatives to preserve the furniture industry in Ukraine in the context of the global crisis and the coronavirus epidemic.

Representatives of the Ukrainian Association of Furniture Manufacturers in particular proposed the following initiatives:

• recognition of the legal fact of the declared quarantine as force majeure;
• implementation of a moratorium for inspections by regulatory authorities (excluding measures related to quarantine compliance) for a period up to January 1, 2021;
• postponement of implementation of the Law of Ukraine “On Amendments to the Tax Code of Ukraine regarding the detailing of settlements in the field of trade and services” dated September 20, 2019 No. 129-IX for a period of 12 months
• ensuring the unhindered implementation of the norms of Article 22 of the Law of Ukraine “On Compulsory State Social Insurance” on September 23, 1999 No. 1105-XIV on the provision of temporary disability benefits in connection with the introduction of quarantine from the first day for the entire time of absence from work for this reason;
• temporary exemption from the payment of ERUs and personal income tax for a period not less than the duration of the quarantine.

 

Assistance to business authorities in the world

Already today, a number of states have created mobilization measures to prevent negative economic forecasts in connection with the spread of coronavirus. So, in the USA they plan to delay the payment of taxes for small and medium-sized businesses for three months. Speaking of numbers, President Trump has proposed reducing payroll tax to 0%. In Denmark, authorities intend to provide “tax holidays” to taxpayers to reduce the impact. In Australia, a package of measures is being prepared for businesses in the form of tax incentives for investments, general support for small and medium-sized businesses, as well as benefits for pensioners. The country where the coronavirus spread to the world, China, did not stand aside on the issue of business support. There it was decided that VAT would not be imposed on medicines and drugs that are bought on a cashless basis. Logistic and courier companies that provide delivery of vital goods to citizens are also exempt from VAT. Tax benefits are also expected in the areas of transport, tourism, HoReCa, which suffer significant losses due to the virus. Powerful business support is already provided by France, the UK, Italy and others.

The Ukrainian Association of Furniture Manufacturers calls on the Cabinet of Ministers of Ukraine and the Verkhovna Rada of Ukraine maximally consolidate joint actions between the state and business in order to protect the Ukrainian economy before a new kind of world crisis!

We are open to cooperation and ready to work together to support the business.