Danchenko: Digitalization can bring 10.5 billion UAH to the budget without any investments

This budget does not provide for a single program of the so-called digital economy, and this means that we are failing to make use of billions of hryvnias, which are literally within our reach, says Samopomich deputy Oleksandr Danchenko.

There are many examples of this:

– The list of electronic services, which the state needs in order to develop. For example, the introduction of public electronic registries on the basis of blockchain, modern technologies.

“This immediately generates about 1.5 billion UAH of savings in the budget, because now, instead of one registry, we have 78 registries, respectively 78 companies that serve them and “eat the budget money”. And these ridiculous registries made on paper 20-30 years ago are used by criminals for their own illegal purposes. This hurts the investment climate a lot,” says the deputy.

– Electronic excise stamp, which completely kills the counterfeit of not only alcohol and tobacco products, but also medicines.

Danchenko explains, “From alcohol and tobacco alone, revenues can amount to 3.5 billion UAH. In general, the market is estimated (with medicines, with everything else) at 17 billion UAH. Whereas, the electronic excise stamp also protects the buyers from counterfeiting, shows how the goods were imported, as well as their customs clearance. This is about people’s health, in the first place, not only about cost savings.”

– Lottery business (not gambling), which is present all over the world. It finances sport, culture, and other social programs.

In the world, it works as follows: there is a central electronic excise stamp in the Ministry of Finance or Tax Office. Once an instant lottery ticket is bought, the money goes automatically to the central server, everything is calculated and the revenues go centrally to the state.

In Ukraine, according to the people’s deputy, there is only cash collected. In 2014 (back in the time of the criminal authorities) the lottery, despite the fact that it was in the shadow, paid 240 million UAH of taxes per year. Now, there is only 30 million UAH. A digital order could give additionally 5 billion USD per year to the budget.

– Legalization of smartphones and gadgets. To date, 95% of all gadgets in Ukraine are imported illegally. It is very easy to remedy the situation. Each device has its own IMEI-code and such a system had been already introduced, but it ceased to operate 4 and a half years ago.

Danchenko says, “The system is already there, nothing needs to be done, just turn it on and control the importation of all smartphones. This will immediately give 1.2-1.4 billion UAH per year. Even the State Fiscal Service confirms this. Moreover, such a system gives a social effect, since thefts make no sense – a stolen phone can be turned off through the system and the thief will not be able to turn it on. But here it is clear that someone is covering the thefts, and someone is covering smuggling.

Both Samopomich and the committee chaired by Oleksandr Danchenko are fighting for digitalization. Samopomich was the first political force that went to the polls with the digital economy 4.5 years ago:

“We are the only ones who understand it, all others are using it for self-promotion. We need a new president and a new parliament, which will introduce these technologies and will not be afraid that digitalization kills corruption.”

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