The export of workers — migrant workers — the main export article of the Ukrainian economy. According to the national Bank of Ukraine, in 2019 remittances from Ukrainians abroad, amounted to 12.8 billion. This exceeds the net income from total exports of Ukraine. Overall, Ukrainian exports in 2019 year estimated at $ 50 billion. Net average profit from the exports could reach roughly 20%. Therefore, in 2019, Ukrainian businesses on exports earned about $ 10 billion “clean” means.
The epidemic of coronavirus kills of migrant workers (migrant workers) as the main article of the Ukrainian economy. Hundreds of thousands of Ukrainian migrant workers returned home. For the past two months, the Ukrainians can’t go to work. Ukrainian retail chains, builders, officials, doctors, school teachers, pay offices and universities, Tutors, workers, clothing manufacturers, transportation companies and others will receive less in 2020 billions of dollars. The country’s economy could collapse further by 20-25%.
Ukrainian domestic prices for food, utilities, clothing and other goods calculated on the income of workers, rather than local “official” salaries. Ukrainian producers and sellers of products operate on the principle that families of migrant workers have to pay for the products not less than in the EU. The price of food in the center of Ukraine, for example, in the river, plus or minus similar to the prices in Moscow or Berlin. Except that only local fruits are cheaper. The EU quality milk without palm oil you can buy for about the same or even cheaper. Milk is cheaper in Spain, the Czech Republic, Slovakia, Portugal, Hungary and Poland. Expensive in the Netherlands according to official data it is a little more expensive, but in reality I bought it in the Hague almost a third cheaper than in Ukraine. If Ukraine will not have money migrant workers to make purchases at such prices, at least half of Ukrainians will simply starve.
Jobs for migrant workers in the Ukraine, even if they agree to Ukrainian salaries. Quarantine dumped hundreds of thousands of Ukrainians working in the country. Internal salaries in the best case, allow Ukrainians to survive without the right become seriously ill. Ukrainian wages insufficient to pay for even the treatment of medium complexity. On the website of Nikopol plant “Interpipe”, owned by Pinchuk, has information on the average annual wage at the plant in the range of 104 thousand UAH without taxes or 8 thousand 700 hryvnias a month “dirty”. From the point of view of the income and GDP of Ukraine, a Ukrainian pensioner, who cares for the elderly somewhere in the North of Italy, earns around thousands of euros and send the money home, bring the Ukrainian economy nearly as much as 1,5-2 young workers in hazardous industries “Interpipe”. While in Ukraine she almost does not exist the slightest chance to get a more decent salary.
In response to your contribution to the economy of Ukraine, the workers have every right to demand state support to defend their rights. First of all, they can claim that the state ceased to regard them as economic criminals and legalized their right not to pay Ukrainian taxes on income earned abroad. Employees are never paid, not paid and will not pay Ukrainian taxes on their foreign income. The level of patriotism does not matter. Taxes are not paid agricultural workers do not pay programmers do not have to pay the waitresses are not paid by the grantees and professors of Lviv University — the “citadel of Ukrainian nationalism”, reading lectures abroad.
My friend, a teacher from Lviv University shared their impressions about the reaction of colleagues to his principled position to pay taxes from foreign income. It really takes a Declaration and pays. But none of his colleagues, receiving income abroad does not. Reaction to his stance clear: “Why do you need this?”. And why do they, one wonders, must pay these taxes on foreign income if all large and significant part of medium business in Ukraine legally “optimize” the Ukrainian taxes through offshore?
If migrants work abroad legally, they pay all the local taxes and contributions to pension funds. Part of the Ukrainians already receive let small, but the Italian earned the pension. To pay Ukrainian taxes on the earned in Italy means to pay double tax. A lot of Ukrainians working abroad unofficially. To pay tax in Ukraine is tantamount to an open acknowledgement of the breach of EU law.
Part of Ukrainian citizens can not declare their foreign, even legal work, because in Ukraine they can be considered criminal. Those Ukrainian women who can legally work in the red light district in Amsterdam or Reperbahn in Hamburg, let alone try to declare the Ukrainian authorities, where they work… In Ukraine, there is a legitimate sphere of sexual services. But if they forward a portion of their earnings to Ukraine, I bring home much more useful than tens of thousands of the same Ukrainian accountants involved in schemes for “laundering” money and work offshore. Not to mention the considerable part of politicians, officials, deputies, prosecutors, judges.
Ukrainian zarobitchane may require the establishment in Ukraine of the status of an individual exporting personal labor. After all, Ukrainian business does not pay VAT on export sales. Moreover, as the migrant workers and their families already deduct taxes on their purchases in Ukraine. The Ukrainian government, of course, can strengthen the monitoring of expenditure of such workers in Ukraine. But this can only lead to a decrease in remittances to Ukraine. Ukrainians are working abroad legally, will leave more money there and more to evacuate their families from Ukraine. Due to double taxation for the part of guest workers to be profitable to support their loved ones abroad but not pay Ukrainian taxes in addition to the European.
Legalization of foreign employees ‘ income will allow them to legally transfer money to Ukraine legally spend, put earned on accounts in Ukrainian banks and the desire to invest. Now without income certificate the same Oschadbank will not accept from you any more or less significant amount. On the twenty-eighth of April, began to operate the law on strengthening control over the banking payments and cash payments. If it really works, the Ukrainian zarobitchane in Ukraine will be in difficulty. The state of Ukraine will further push the main source of its exports in the shadow economy.
In addition to the legalization of Ukrainian migrant workers have the right to demand from Ukraine to enroll them in the retirement experience for their work abroad. Assuming of course that they will be on a monthly basis to transfer funds to your account or Ukrainian their loved ones. They will really be able to capitalize on his Ukrainian pension. The contribution of workers in the Ukrainian pension system through indirect taxes in reality is much higher than many Ukrainians working in the country and pay payroll taxes.
As the main item of Ukrainian export, Ukrainian citizens have the right to require the state to protect their rights before the authorities of foreign States, to organize their return to work abroad in the conditions of the quarantine and to receive from the state financial support. Financial support may take the form of discounts on medical insurance abroad, free passports, reimbursement for visa, interest free or low interest loans for travel and expenses abroad before receiving the first paycheck. The workers — the most profitable export business of Ukraine and have every right to state support no less than close to the government businessmen.
If the state does not meet these workers in crisis conditions, it is possible to combine them into one or more trade unions. Ukrainian workers can support the candidate in the next presidential election or Ukrainian parties who promise to fulfill their requirements. This is just politics, but to get something in Ukraine is possible only by the requirements of “political blackmail” and pressure, not the downtrodden requests or rational proposals. The Ukrainian authorities understand only the language of force and money.
No matter how cynical it sounds, but Ukrainian politicians and officials, for their part, should also support the workers, to save power. The workers should not only help, but “throw” them back to Europe, because they are not only the main item of Ukrainian exports, but also the most active, the most resolute and daring of the Ukrainian people. To travel to distant lands, not “sit on the fifth point” in the “native impoverished marsh”, “roach” without respite, to risk health, and often life can only strong and brave people. If you do not provide them with opportunities to leave and earn, they will not tolerate “rotten Ukrainian elite”. They simply demolished. In Galicia and Volyn this has already happened.