10.11.2020
Consumer protection: Ukrainians' assessments of the anti shadow initiatives of the government
- The results of a survey conducted by Rating Group showed that 80% of survey participants are convinced that issuing a fiscal receipt protects consumer rights. 16% hold a different opinion. The latter are relatively more common among entrepreneurs.
- 48% of respondents are convinced that guaranteeing safety and quality when purchasing goods and services in Ukraine should primarily be the responsibility of the entrepreneur who sells the goods or provides the services. 44%, on the other hand, believe this should be ensured by state consumer protection authorities. The latter view is relatively more common among older and less affluent respondent groups.
- 53% believe that expanding the number of sectors required to issue fiscal receipts will lead to better order in tax collection, while 33% believe this will complicate doing business. The latter opinion is most widespread among those who own a business (55%).
- The vast majority of consumers are not ready to purchase risk-group goods without receiving a fiscal receipt (more than 60%). This is especially true for complex household appliances and electronics, where more than 80% are not ready to buy them without a receipt. More than 70% also do not support the initiative to abolish fiscal receipts when purchasing risky categories of goods.
- Almost 70% are not ready to file a complaint with the State Tax Service in cases where a seller did not issue a fiscal receipt and to receive a monetary reward amounting to 100% of the product’s value. 28% stated that they could do so if a receipt was not provided. Compared to last year, the share of such respondents has slightly increased (in October 2019 it was 20%). A relative majority of those willing to file such complaints are younger respondents, those who expressed a desire to have their own business but do not yet have one, and those who have not encountered situations of non-issuance of receipts over the past year.
- 66% support legislative initiatives by the authorities aimed at eliminating schemes of tax evasion by businesses. A quarter are opposed to such innovations. The latter are relatively more common among those who already own a business or plan to start one (around one third).
- 51% believe that expanding the use of cash registers (RRO) is rather a way to bring order to tax payments. At the same time, 37% are convinced that this constitutes pressure on small businesses. This opinion is particularly widespread among those who own a business (63%).
- Two thirds agree with the statement that strengthening state control over business activities improves the quality of goods and services. One third hold the opposite view. About half (54%) agree that only sellers who honestly pay taxes can provide quality goods and services.
- A predominant share of respondents (from 55% to 60%) support the following initiatives: creating an application similar to Privat24 or Monobank that would allow entrepreneurs to issue fiscal receipts in electronic format, the possibility of receiving an electronic receipt instead of a paper one when making purchases, expanding the scope of cash register (RRO) use (56%), and providing cashback to consumers in the amount of 100% if a seller does not issue a fiscal receipt for goods (55%). Every third to fifth respondent is opposed to these innovations. The introduction of large fines for businesses selling goods without receipts was supported by a relative majority of Ukrainian respondents (47%), while a significant share opposed this initiative (37%). This measure is perceived particularly critically among entrepreneurs.
- Respondents did not support such government initiatives as additional taxes on the purchase of smartphones, televisions, and tablets aimed at increasing payments to authors of songs, music, films, and other intellectual products, as well as the introduction of one-time asset declarations (at a rate of 9–10%) by citizens for property and funds on which taxes were not paid (around 50–60%).
- One of the main motives when purchasing risk-group goods (medicines and medical products, complex household appliances, electronics, and auto parts) is the price of the product, especially when purchasing medicines. For auto parts and electrical equipment, warranty support and the possibility of returning goods are also important. For the latter group of goods, store brand recognition also plays a certain role in purchasing decisions.
- 47% of respondents made purchases of goods and services from domestic companies online over the past year, while 53% did not have such experience. Among the information most often sought by those who made online purchases was a phone number (78%). Half of respondents were interested in the company’s address (physical and legal), legal name, license availability, and email address. At the same time, for about 40% of such consumers this information was not of interest. Consumers were least interested in the seller’s form of entrepreneurial activity and identification number/EDRPOU code identifying the entrepreneur as a business entity. At the same time, 54% confirm the statement that the ability to obtain full information about the seller is a guarantee of high quality of goods and services.
- 14% stated that they have the “Diia” application installed on their smartphone. Another 11% would like or plan to install it. 51% do not have it and do not plan to install it, while 24% do not have smartphones. Among those who have the application or want to install it, 68% would not mind having a “Consumer+” page in the application with electronic receipts, product warranties, and a list of sellers identified as business entities who do not conceal this information when consumers request returns, exchanges, or warranty repairs.
- The majority (54%) do not support the introduction of mandatory income declaration for all categories of citizens with obligatory annual tax filings. 38% support this initiative. Supporters are relatively more common among residents of Western Ukraine, younger respondents, and more affluent individuals.
Methodology
- Audience: Ukrainian citizens aged 18 and older. The sample is representative in terms of age, gender, region, and type of settlement.
- Sample size: 2,000 respondents.
- Face-to-face formalised interviews.
- Research representativeness error: no more than 2.2%.
- Fieldwork dates: 29 October - 2 November 2020.
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