The "National Cashback" in Ukraine – manufacturers support it, while parliamentarians will block it

The Government of Ukraine has approved the procedure for providing financial assistance to Ukrainians under the "National Cashback" programme. According to this, citizens will receive a 10% refund on the cost of Ukrainian goods they purchase. The programme will begin on 2 September this year. As reported by the Ministry of Economy of Ukraine, cashback will be available for both food and non-food products produced in Ukraine, but it will not apply to excise goods.

The maximum amount of cashback will be 3,000 UAH per month, and the funds received through cashback may be used for services—medical, utility, sports, cinema, train tickets, and more. Cashback will only be granted for purchases made electronically and that are recorded in the fiscal receipts of the sellers. Thus, only merchants who ensure the transmission of information about the completed transactions and who are registered under the general taxation system can participate in the programme.

Representatives of the agricultural business were among the first to comment on the new initiative. The "Milling Industry of Ukraine" association supports the Ministry of Economy's proposal to extend the cashback mechanism to food products within the framework of the "Made in Ukraine" programme. Industry experts believe that supporting domestic producers is a pragmatic and correct policy for the government. They also emphasise the importance of a programme that encourages buyers. If consumers intentionally choose Ukrainian products, it will benefit everyone—the buyers, because they will receive quality goods, and the state, as producers pay taxes.

In turn, the enterprises that are members of the Union of Dairy Enterprises of Ukraine also welcome the launch of the "National Cashback" programme, under which buyers of Ukrainian products will be able to receive a 10% cashback from the government on their expenditures. It is noted that Ukrainian milk processing plants are currently operating in extremely difficult conditions; however, despite all the challenges and threats, they continue their operations, providing jobs and paying taxes. Therefore, by choosing domestic products, Ukrainian consumers support the economic stability of enterprises, as this contributes to budget revenue, which in turn funds military support.

Overall, as reported by Rodion Rybin, president of the Union of Food Industry Producers of Ukraine, in an interview with Forbes, half of the enterprises in the food sector may participate in the programme—mainly those supplying products to stores. He predicts that cashback will increase demand for products from Ukrainian producers by at least 1.5%, which is a good figure under current conditions. For their part, representatives of the Ministry of Economy indicated that, according to a survey, 92% of Ukrainians support programmes that encourage the consumption of Ukrainian goods.

However, at the same time, the head of the parliamentary Committee on Finance, Taxation and Customs Policy, Yaroslav Zheleznyak, stated that the government's initiative regarding national cashback for purchasing Ukrainian goods is populist. Therefore, the politician believes that the Verkhovna Rada will not support it.