Transcarpathia took in 400 relocated companies during the war – Deputy Head of the Presidential Office
This was announced by Viktor Mykyta, Deputy Head of the President’s Office, during the Industrial Evolution forum.
According to him, the experience of business relocation has shown that attracting legitimate businesses has a direct impact on regional development and the replenishment of local budgets.
“When I was head of the Zakarpattia Regional State Administration, Zakarpattia welcomed 400 companies at once. We vetted them all, worked with each enterprise and, in effect, secured the greatest opportunity for the region’s economic development,” said Mykyta.
He noted that, alongside the relocated enterprises, the region saw the creation of new jobs, increased tax revenues and additional economic potential.
“We saw tremendous growth in local budget revenue. Every year, revenue increased, and we saw the direct impact of business activity in the region,” the official emphasised.
According to Mykyta, the economic development of regions is now one of the key indicators of the effectiveness of regional military administrations. At the same time, the relocation process has shown that for full-scale development, it is necessary not only to attract enterprises but also to help local businesses emerge from the ‘shadow economy’ and provide access to state support programmes.
He also drew attention to the significant potential for bringing the economy out of the shadows. According to the official’s estimates, simply legalising a portion of Transcarpathia’s informally employed population could bring an additional 3 to 5 billion hryvnias a year to local budgets.
“We do not see these people in the taxpayer system and we do not see their personal income tax. If they start working legally, the region will have a very significant financial resource for development,” noted Mykyta.
As a reminder, it was previously reported that a 10-year economic strategy is being drawn up in Ukraine.
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