EBA urges Rada to exempt retailers from paying for use of real estate during martial law

The European Business Association (EBA) called on the Verkhovna Rada to exempt retail and postal operators from paying for the use of real estate during martial law and adopt bill No. 7174, registered on March 18.

"One of the urgent measures aimed at supporting the retail industry is provided by draft law No. 7174 of March 18, 2022, which is to be considered by the Verkhovna Rada of Ukraine promptly. This draft law exempts retailers and postal operators from paying for the use of real estate (or its part) during martial law. This relaxation applies to business entities operating in retail, at least 60% of which are intended for the sale of food, medicines, medical devices, hygiene products, or household chemicals; postal operators that accept/deliver items, along with paying the rent to the landlord, have to make payments of land, real estate tax other than land, and utility bills," it said.

"At the same time, the draft law proposes to establish that these payments are borne by the tenant as payment for the relevant period in proportion to the area of real estate rented under the contract. In cases where the contract does not provide for the obligation of the tenant to pay these fees in full or in part," the report says.

"The EBA experts express their support for this draft law and call on the Verkhovna Rada to adopt it as a basis and in general. Thus, the EBA member companies, representing the retail industry, draw attention to the fact that a significant part of their expenditures is related to rent. At present, retailers in some regions are on the verge of survival, their operation is paralyzed due to systemic losses and is already leading to the closure of stores and outlets. We hope that the proposed easing will help the retail industry to survive and provide basic operations in the areas currently affected by the war," the report reads.

Source: www.en.interfax.com.ua