Finance Ministry rejects three proposals from Rozetka after 1.1 billion UAH warehouse destroyed

Refusal of financial support

The Ministry of Finance of Ukraine did not support any of the three initiatives sent by the company Rozetka to the tax committee of the Verkhovna Rada. This position was formed after the incident on 5 August, when the network's largest distribution centre in Brovary was damaged by a missile strike. According to estimates, the value of the destroyed goods and property exceeds 1.1 billion hryvnias.

What the company requested

In response to the losses incurred, Rozetka proposed three measures:

• provision of an interest-free deferral of tax payments without a requirement to provide collateral;
• cancellation of planned tax audits;
• simplification of the reporting procedure in cases where documents were destroyed as a result of shelling.

Position of the state department

As reported by Forbes Ukraine, the Finance Ministry argues its refusal by stating that the destruction of one warehouse does not indicate the company's general inability to fulfil its tax obligations. The department emphasises that the business can dispose of other assets and sources of income.

In addition, interest-free deferral is considered a risk factor for the state budget. Regarding the idea of extending the moratorium on audits, representatives of the Finance Ministry point out that this would contradict Ukraine's international obligations, in particular to the International Monetary Fund.

Business reaction

Representatives of Rozetka remind that their requests did not provide for compensation for the damages caused. The main goal was to obtain additional time and financial resources necessary for the restoration of infrastructure and the rebuilding of the business.