Zelensky approves two-year moratorium on SME inspection

Ukrainian President Zelensky signed a decree on Oct.
17 ordering a two-year moratorium on conducting reviews of small and mid-sized
enterprises (so-called FOPs) for adhering to the recent requirement of
employing state-sponsored cash registers. With the same decree, Zelensky
ordered the creation of a coordinating council of developing micro and small
business and including representatives of civic organizations. The council will
work on future legislation addressing FOPs. The decree also orders simplifying
the requirements for FOPs qualifying for the first category of simplified
taxation, as well as simplifying the procedure of registering with Digital
Payment Registrars (RROs).

Recall, Ukraine’s parliament approved in September several bills
on reforming small and mid-sized business. The measures drew widespread
opposition from entrepreneurs, including the owners of leading businesses.

Zenon Zawada: Zelensky’s
policies so far can be described as lacking strategic conviction. When
resistance builds to declared measures, Zelensky responds with either verbal
denials (as in the case with his Donbas peace plan) or backtracking from the
difficult policy, such as this attempt to address tax evasion. It’s hard to
imagine the Zelensky administration pursuing any serious reforms, or any dramatic
policies, if the president is going to back down once resistance builds.

Once a policy is adopted by parliament or announced by
a high-ranking official, it should be carried out, more or less. This move
sends the negative signal that the president will fold if resistance is strong
enough.