Mykhailo Sokolov, Deputy Chairman of the Ukrainian Agri Council (UAC), took part in a working meeting of the heads of leading business associations and the International Monetary Fund (IMF) team organized by the Ukrainian Business Council.

The participants of the meeting have discussed issues related to the reform of the tax system, protection of producers' rights, labor legislation and the simplified taxation system.

Mykhailo Sokolov emphasized the need for a systemic reboot of the State Tax Service based on the model already tested for the customs and the State Bureau of Investigation, with the appointment of the head exclusively through a competition commission with the participation of international experts.

"The Tax Service should be responsible for compliance with tax laws by all participants in the process, and not be a tool for filling the budget at the expense of business. Accordingly, the Government should plan budget expenditures based on the real potential of the economy, rather than setting fiscal targets for tax and penalty collection," he said.

The need to implement the European directive on unfair trade practices was also raised.

"Retail chains often take advantage of their market advantage by delaying payments to suppliers and imposing marketing payments. Such actions impede the development of Ukrainian food producers," said Sokolov.

Particular attention was paid to the abuses by labor inspections in the issue of retraining employees who cooperate with companies under civil law contracts. The UAC called for the establishment of clear and transparent criteria in this area.

Sokolov also emphasized the migration challenges and the need for Ukrainians to return after the victory.

“Given the large number of Ukrainians who have gone abroad and are now considering whether to return after the war, Ukraine should take a more liberal and less fiscal approach, otherwise it will lose these people and the corresponding tax revenues,” he said.

In addition, the business associations expressed concern about the Revenue Strategy approved by the Government, which provides for a significant reduction of the simplified taxation system, including the transfer of many agricultural enterprises to the general taxation system. In particular, the Deputy Chairman of the UAC emphasized that such an approach could negatively affect the work of a significant number of agricultural enterprises.

Following the meeting, the representatives of the IMF and business associations agreed for further systematic cooperation on issues of priority for the Ukrainian economy.