The third meeting of the group of expert economists working on plans to overcome the crisis caused by the pandemic and support and develop business took place in the capital. The meeting was attended by city officials, group experts, representatives of the European Business Association, and the American Chamber of Commerce.

Thus, together with experts, business representatives, the city authorities have identified several important areas for further joint work.

"The coronavirus pandemic has changed our lives - in all its spheres and has caused significant damage to business and the economy. That is why we must work systematically and make every effort to create a stronger and more innovative economy. The city has already done a lot to help and support the business. But more needs to be done. Our task is to work out such proposals, to create such conditions for business to continue to work and develop", - the mayor said.

Regarding the proposals developed by the group of experts, the first concerns entrepreneurial activity and compensation to entrepreneurs on loans.

"We are doing everything possible to reduce the burden on business - even by not receiving revenues to the city budget. This year, the city has allocated UAH 7 million to compensate the interest rate of business loans", - Vitali Klitschko said.

By the end of this year, thanks to the support of the authorities, the capital's business will pay 0.1% on loans and loan agreements concluded or to be concluded with partner banks or authorized banks. Experts suggest maintaining the same interest rate for the next two years. For this city, it will be necessary to allocate UAH 25 million from the budget in 2021 and UAH 75 million in 2022.

Another proposal concerns the payment of personal income tax. Today, 60% of personal income tax is collected from the capital to the State Budget, and 40% from other cities.

In addition, according to experts, it is projected that from January 1 next year, individuals will be able to pay personal income tax not at the place of work, but at the place of registration. As a result, Kyiv may lose a significant part of its revenues. Therefore, the expert group has drafted a bill that balances the rights of Kyiv with other cities - it is proposed that the capital be levied on the State Budget 40% of personal income tax, instead of 60%, as now.

Source: Official portal of Kyiv