The UBA Committees have joined the collective appeal to preserve the simplified taxation system for small internet service providers.
The UBA Committee on Tax and Customs Law, the UBA Committee on IT, Media and Personal Data Protection along with NGO "Office of Effective Regulation," the Internet Association of Ukraine, the Association of Rights Holders and Content Providers, the Analytical Center "Ukrainian Institute for the Future," the Ukrainian Union of Industrialists and Entrepreneurs, the Ukrainian Confederation of Internet Operators and Services, the NGO "Human Rights Platform," the NGO "Eastern Variant," Roman Perun (military and volunteer), and Maxim Smilyanets and Victoria Opanasuk, co-founders of Telecom Ukraine, have appealed to the President of Ukraine, the Verkhovna Rada (Parliament), the Cabinet of Ministers, and the National Security and Defense Council of Ukraine on maintaining a simplified taxation system for small Internet providers.
According to STS clarifications, as of October 1, 2024, internet providers would no longer be eligible for this system due to misinterpretation of the Law on Electronic Communications. This move threatens internet access for over 200,000 rural households, reduces service quality, and risks market monopolization.
Key risks include restricted internet access for over 3 million households, particularly in remote areas where small providers are the only service option, including military users. There is also a concern over reduced service quality during power outages, especially in conflict zones. The decentralization of Ukraine’s internet network, crucial for defense against physical and cyberattacks, could be compromised. Additionally, the cost of internet services may rise due to increased administrative burdens, leading to market monopolization by large players, often with foreign ownership.
To date, a petition against these changes has gathered over 25,000 signatures on the government’s website. Civil organizations and UBA Committees jointly urge the preservation of the simplified tax system for internet providers, as it is a crucial element for supporting small businesses, ensuring information access, and protecting citizens' digital rights.
The full text of the collective appeal can be found at the link.