‘Fight or Work’ principle: Shmyhal hints at expansion of economic exemption
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In Ukraine, the possibility of increasing the scope of
economic exemptions from mobilization for citizens is being considered, said
Prime Minister Denys Shmyhal during the Yalta European Strategy (YES) forum.
“Mobilization today is a priority, it’s about survival. We
understand that maintaining balance requires coordination between the
government, the military, and Ukrainian businesses,” said the Prime Minister.
Shmyhal noted that the Ukrainian government plans to update
the “business exemption product” soon, but this will be done with adherence to
the “fight or work” principle.
“In a country at war, there is no other way. While part of
the population fights and pays for our future victory with their lives, the
other part must work unconditionally, fill the budget, produce weapons, and
create everything needed to support those on the front line,” emphasized
Shmyhal.
According to the Prime Minister, this principle is
critically important “for our survival and victory.”
“Currently, we have over 900,000 people in business
exempted. This is an important indicator. We understand that we might consider
a larger number of exemptions in business, but only if the ‘mathematics’ of
mobilization are fully observed,” concluded Shmyhal.
Economic exemption in Ukraine
On June 11, 2024, the Ukrainian Parliament registered bill
11331, which aims to define the process of economic exemptions.
The document has not advanced since then, but the government
has proposed several alternative models for the exemption mechanism.
According to Svitlana Mykhailovska, Deputy Director of the
European Business Association, there are currently four models:
- The first model (bills 11331 and 11332) proposes a single
military levy of 20,400 UAH (1,200 non-taxable minimums) per month for
businesses and individual entrepreneurs (IEs).
- The second model (bill 11331-1) suggests using an average
salary of 35,000 UAH (12 minimum living wages) as the criterion for businesses.
- The third model (bills 11331-2 and 11332-1) includes an
average salary criterion of 35,000 UAH for businesses and a single military
levy of 20,400 UAH per month for IEs.
- The fourth model (bills 11388 and 11332-2) proposes
introducing only the 20,400 UAH monthly levy.
On Aug. 29, MP Yaroslav Zheleznyak reported that the
Ministry of Economy is continuing work on the final version of the economic
exemption procedure, but the final decision will be made by Ukraine’s top
political leadership. According to the MP, economic exemptions could be
implemented in October-November 2024.
Later, Prime Minister Denys Shmyhal stated that new
exemption conditions will be introduced in Ukraine soon.
“This won’t be something sensational; there will obviously
be changes to the existing exemption parameters for Ukrainians,” said the Prime
Minister.
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