The idea of taxing packages from abroad valued below EUR 150 should be abandoned, as it could lead to unjustified increases in government spending on customs and tax procedures, as well as a logistics collapse, warned Nova Poshta co-owner Volodymyr Popereshniuk.

"I think there are enough reasons to discard the idea of taxing packages, as it is both senseless and harmful to everyone," he wrote on Facebook on Saturday.

Popereshniuk noted that, amid catastrophic tax increases and new regulations for the economy, taxing international parcels is the worst idea.

"The government spends more on customs and tax procedures than it collects in taxes from parcels. The reason lies in the cost ratio between customs procedures and the value of the parcels themselves. And this is still about 'expensive' parcels above EUR 150. Lowering the tax threshold will bring even cheaper packages into the customs process, further increasing budget losses," wrote Popereshniuk.

He also warned that implementing the initiative could lead to a logistics collapse.

"We currently clear customs for only 2% of parcels, although every parcel goes through customs procedures. Delays already take nearly a day. It's not hard to foresee a logistics collapse and significant delays if all packages become subject to taxes," he added.

Popereshniuk predicted that the initiative would cause widespread dissatisfaction among Ukrainians.

"Until now, all tax innovations have only affected businesses. But once new taxes on packages are introduced, millions of individuals will feel the weight of the tax burden. This will not only cause financial losses but also electoral consequences for the state," he said.

Popereshniuk believes the initiative will boost the shadow economy, smuggling, and corruption.

He urged increasing government revenue by raising the duty-free limit for parcels to EUR 1,000 and simplifying customs procedures.

Earlier, Nova Global CEO Yuriy Benevytsky warned that the initiative would enable large importers to set exorbitant prices, affecting not only civilians but also volunteers and soldiers who rely on affordable foreign goods.

As a result of the initiative's implementation, the shuttle business and illegal imports will flourish in Ukraine. In addition, manual tax administration may cost more than the potential budget revenue from these changes, Benevytsky warned. He also pointed to a possible consequence in the form of paralysis of the State Customs Service, which may not be able to cope with the increased flow of parcels requiring processing.

Meest China shareholder Viacheslav Lysenko echoed these concerns, noting that tax-free packages up to EUR 150 are a lifeline for Ukrainians struggling to make ends meet. Many use Western marketplaces to purchase essential goods at reasonable prices, especially in light of high domestic markups. More than 40% of these buyers are women purchasing everyday clothing and household items for their families, with nearly 80% of parcels falling under EUR 40.

According to MP Yaroslav Zhelezniak (the Holos party), 33.9 million parcels were received in Ukraine in the first half of 2024. Of this amount, only 270,600 parcels worth UAH 27.7 million were imported under the tax regime, which is 0.8% of the total, without taxation – 33.6 million parcels worth UAH 30.3 million. Zhelezniak admits that for the whole of 2024, the number of parcels sent to Ukraine will reach 68 million – 24% more than last year. In 2023, according to the people's deputy, 51.9 million parcels were received in the country.

As is known, the head of the committee Danylo Hetmantsev reported that the Verkhovna Rada Committee on Finance, Tax and Customs Policy is completing the preparation of a bill on taxation of parcels from abroad in the amount of up to EUR 150 million, which are currently not taxed.