Fedorov: "now they are considering whether it is possible to scale the action of City to the whole country"

The City action should be scaled to the whole of Ukraine. Now the government is considering how realistic this is. This was announced on June 13 by the minister of digital transformation Mikhail Fedorov.

Main " action City is one of the best tax systems. We have reduced taxes for technology companies by five times. We need to scale the City's action to the entire country. I will tell you a secret: now they are considering mathematically whether this is possible. I believe that this should be done urgently, and I very carefully impose the idea that entrepreneurs should be given freedom," Mikhail Fedorov said. To enter the City Action Now, you need to have a business in the technology sphere: development, launch of fintech products, design, and so on. According to Fedorov, previously there were restrictions on the number of employees, the average salary, but now they have been lifted. DOU wrote more about the changes here. Details

The minister of digital transformation estimated that Ukrainian businesses have 60% of the tax burden: personal income tax, ERU, VAT, etc. According to him,"no country in the world has become rich due to high taxes." At first, businesses were given freedom, and only then they "tightened the screws".

"In Ukraine, the development of entrepreneurship took place thanks to fops. They are used by Novaya Pochta, Rozetka and other large companies. And in Diya City, we proposed to scale the system of fops to legal entities," Fedorov explained.

At the 4th Diia Summit on February 8, a special mode for the IT industry Diya City was officially launched. The authorities expect that the share of it in the state'S GDP will grow from 4% to 10%, and industry revenues will increase to.16.5 billion.

In the first three months of the war, almost five thousand fops with the Okved "computer programming"were registered in Ukraine. Business adaptation to war is faster than to the coronavirus pandemic.

It fops were the most active part of private entrepreneurs in 2021. Then the IT sector of Ukraine grew by 44.5 thousand sole proprietors-programmers over the year. There was no increase of 26% in any of the activities.

In addition, the IT industry of Ukraine provided a record експорт 2 billion in export revenues in the first quarter of 2022, despite martial law, mobilization, and forced relocation of businesses and teams. The same figure in 2021 was 1 1.44 billion. In fact, the volume of it exports increased by 28%, according to data from the National Bank of Ukraine.