Revenues of local budgets, penalties for fake COVID certificates, and military exercises

During their last plenary week, MPs will make decisions that can affect our lives. In particular: present a “surprise” for local budgets, introduce penalties for owners of fake COVID certificates, and bring good news for the Armed Forces of Ukraine. To know more, please read this analytical digest by the Centre of United Actions.

New distribution mechanism for excise tax on tobacco

Draft bill #5719 of July 1, 2021

Status: second reading.

Who is affected: members of territorial communities, local government, and government bodies.

Summary of the bill:

• the State Treasury will transfer a share of excise tax on retail tobacco and liquids for e-cigarettes sales to budgets of territorial communities
• the State Tax Service will recalculate the amount of the share every month.

What is wrong:

• in violation of the Rules of Procedure, there is no version of the bill prepared for the second reading
• since the State Tax Service will recalculate the share for local budgets every month, revenues of local budgets could decrease
• now local governments get revenue from this tax daily. If the bill is adopted and they will start getting it monthly, local governments will have problems with planning their budgets and operating budgets
• the proposed mechanism for calculating the share of the excise tax is complicated, so the distribution of the tax will be less transparent and thus less open to public supervision
• an approach when a share from the state tax is transferred to local budgets is risky. The state can decrease the share at any moment at the expense of local budgets.

Additional information: the Association of cities of Ukraine sent a letter to the Budget Committee indicating the shortcomings of the draft bill.

New penalties for fake vaccination certificates

Draft bill #6084 of September 23, 2021

Status: second reading.

Who is affected: persons who issued, are issuing, or will issue fake vaccination certificates, law enforcement agencies, and courts.

Summary of the bill:

• introduces the following criminal penalties:
  • for those issuing or selling fake certificates of vaccination against highly infectious diseases for profit — a fine from ₴51,000 to ₴102,000 or up to 3 years of imprisonment
  • for medics that intentionally issue fake medical documentation or add false information about vaccination against highly infectious diseases into the electronic system — a fine from ₴68,000 to ₴136,000 or up to 3 years of imprisonment
  • for those deliberately using fake certificates of vaccination against highly infectious diseases — a fine from ₴17,000 to ₴34,000 or up to 2 years of imprisonment.
• persons, who voluntarily confessed the offense, can be indemnified.

What is right: a reminder about criminal penalties for issuing and using fake documents can prevent some people from committing the offense and motivate them to obey the law.

What is wrong:

• the Criminal Code already provisions penalties for forging documents, selling or using such documents
• according to the National Police, from December 6 to December 12, one hundred criminal proceedings concerning fake vaccination certificates were initiated. Also, 20 suspicions were issued, 17 cases were taken to court. In other words, law enforcement agencies have the means to bring offenders to justice even without the proposed draft bill.

Alternative solution: effective governmental communication will be of more use than the reintroduction of penalties already defined in the Criminal Code. There is more sense in explaining to citizens the risks of forging official documents and using such documents, in reminding them about criminal punishment for such offenses.

Permission for the foreign military forces to participate in military exercises on the territory of Ukraine

Draft bill #6359 of November 29, 2021

Status: can be adopted straight away, without revision.

Who is affected: servicemen of Ukraine and foreign countries, the President, and the Cabinet.

Summary of the bill: approves the decision by the President to allow military units of other countries on the territory of Ukraine in 2022 to participate in the following military exercises:

• multinational exercise of the Armed Forces of Ukraine with the Armed Forces of the USA, other NATO member states, and other states participating in the Partnership for Peace program
• Joint Effort 2022 in cooperation with military units of member states
• Cossack Mace 2022 in cooperation with the Armed Forces of Great Britain
• Riverine 2022 in cooperation with the Armed Forces of Romania
• Maple Arch 2022 in cooperation with military units from Lithuania, Poland, Canada, and other NATO member states
• Viking 2022 in cooperation with the Armed Forces of Sweden, etc.

What is right:

• expanding cooperation of the Armed Forces of Ukraine with military forces of other countries, the establishment of contacts, enhancement of tactical and practical skills, new experiences for Ukrainian soldiers
• observance of the constitutional procedure: decisions by the President have to be approved by the Verkhovna Rada.