STATE COMMITTEE FOR DEVELOPMENT OF BUSINESS TO COME UP WITH PROPOSALS
TO REDUCE NUMBER OF CHECKS OF SMALL AND MEDIUM BUSINESSES
KYIV. Ukraine's state committee for the development of
entrepreneurship is preparing proposals to the Cabinet of Ministers to
reduce the number of checks of SMBs by state agencies, said Olexandra
Kuzhel, newly appointed head of the state committee addressing
participants of the World Bank-organized seminar "Problems of
Organization and Development of Small Businesses in Ukraine".
The committee will propose to limit the number of routine checks by
one,to be carried out by the state tax administration, said Olexandra
Kuzhel. All other overseeing agencies are to time their checks with
the one made by tax collectors. The need for such proposal is based on
the fact that at present small businesses are checked on average 78
times a year by 32 state agencies.
Olexandra Kuzhel also said that she has plans to carry out complete
restructuring of her committee, creating a separate department for the
issues of deregulation of the economy. In line with February 3, 1998
presidential decree, the committee has been authorized to review the
existing legislation related to entrepreneurship and to annul it, if
need be.
The head of the economic ministry private sector department Hennady
Bilous said, addressing the participants of the World Bank seminar,
that about 2.5 million Ukrainians work in the private sector now.
There are 2 small businesses for every 1,000 Ukrainians, one of the
lowest indicators in the CIS. Only 42 percent of the registered small
businesses actually operate. The official said that the rest of the
small businesses either do not operate or operate in the "shadow"
economy sector, due to the shortage of starting capital, high taxes
and the absence of support from the Ukrainian government.