19:56 08.10.2024

Customs staffing increase should accompany parcels taxation under EUR 150 – Ukrposhta CEO

2 min read
Customs staffing increase should accompany parcels taxation under EUR 150 – Ukrposhta CEO

The proposal to tax international parcels under EUR 150 should be implemented only alongside an increase in customs personnel and a bigger budget to support them, according to Ukrposhta CEO Igor Smelyansky in an exclusive interview with Interfax-Ukraine.

"Our stance is simple: any decision must be carefully weighed and calculated. If the customs duty limit changes, we'll need significantly more customs officers, and I'm not sure where they will come from. Plus, the customs budget will need to be expanded," Smelyansky said.

He expressed preference for a European-style model where taxes are collected at the point of sale.

"For example, Chinese online stores could charge taxes and transfer them directly to the national budget. But such a model cannot be launched overnight," Smelyansky added.

He emphasized that Ukraine must adapt to global market competition.

"If identical computer mice are made in the same Chinese factory, but one is flown by air from AliExpress and the other shipped by sea in a container, the latter should be cheaper – whether it's subject to VAT or not."

Previously, Nova Poshta co-owner Volodymyr Poperechnuk argued that the idea of taxing parcels under EUR 150 should be dropped, as it could lead to unnecessary state expenses on customs procedures and a logistical collapse.

Meest China shareholder Viacheslav Lysenko also warned of a potential customs system breakdown if the measure is adopted. He said that being able to order goods up to EUR 150 without tax is one of the only ways for struggling Ukrainian consumers to afford essential items from Western marketplaces, avoiding the 80-100% markup imposed by local retailers.

Lysenko estimated that more than 40% of such orders come from women purchasing affordable everyday items for their children, such as clothes, toys, and household goods, often at discounted prices. Nearly 80% of the parcels in this category are worth no more than EUR 40.

According to Ukrainian MP Yaroslav Zhelezniak (the Holos party), in the first half of 2024, Ukraine received 33.9 million parcels, of which only 270,600 (worth UAH 27.7 million) were taxed, representing just 0.8% of the total. Zhelezniak predicted that by the end of 2024, the number of parcels arriving in Ukraine could reach 68 million – up 24% from 2023.

Earlier, Verkhovna Rada Finance Committee Chairman Danylo Hetmantsev announced that a bill on taxing parcels under EUR 150 was nearing completion.

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