Policy Win: Outdated Regulation of Violations in the Sphere of Cash Flow Was Canceled
A list of outdated President’s Decrees, including Decree #436 “On Application of Penalties for Violation of Provisions related to Regulation of Cash Flow” (hereinafter – Decree #436) was canceled by President’s Decree #418/2019 signed on June 20, 2019.
Liability for violations in the field of cash payments has been overregulated for almost 20 years, as starting from 2001 in addition to Decree #436 another document with supreme legal force and the same scope of application came into force – Law #265/95-VR “On the Application of Cash Registers in the Field of Trade, Catering and Services”. As a result, Decree #436, causing legal ambiguities, became burdensome for judicial system, controlling authorities and economic entities as well.
The American Chamber of Commerce in Ukraine has been continuously advocating for termination of Decree #436 and now welcomes this important President’s decision. As expected, it will lead to reduction of regulatory and administrative pressure on business, harmonization of legislation, as well as eliminate duplication of requirements regarding liability in the cash flow sphere. Application of fines in 5-times amounts for misprints in payment recorders book is also prevented.
The Chamber expresses its gratitude to President’s Administration and experts of the Chamber Member Companies for fruitful cooperation and will continue working on improvement of cash discipline regulation.