The Manifesto reflects key principles of the Ukrainian Economic Freedoms Foundation. It has been supported by citizens who believe that the government impact on people's lives should be minimized, free pricing should be an indispensable element of economic freedom, and the state policy should aimed at maximum freedom of foreign trade. We also believe the development of democratic prospering state is not possible without comprehensive protection of private property.

We, the undersigned, postulate as follows:

Prosperity of society and decent people’s life are based on protection of human rights. Economic freedom is an integral part of these rights;

The most successful and prospering countries are those with a liberal model of economic model;

Wealth and added value added creation is the product of interaction of a large number of free business entities;

The priority of our organization is to protect private property as a basis for social and economic relations, as well as minimizing the amount of tax burden.

Considering this, we support and promise to uphold the following principles:

1. Taxes

The power of government to control human life derives from its power to collect taxes. We believe that this power should be limited.

Any taxes for individuals shall be the result of consensus in society.

Individual taxpayers shall receive a clear benefit from taxes paid.

Taxes should be stable, predictable and shall by no means distort free competition.

In all cases, taxpayers shall have efficient tools to determine mechanisms and cost of tax payment administration, as well as exercise control over their use.

Therefore, any taxes should be based on the following principles:

Taxes on individuals:

individual taxpayers shall obtain "receipts" from the government on a regular basis clearly containing amounts of taxes and areas of their expenditures;

no taxes without representation – payment of tax to the local budget at any level shall automatically give the right to vote when choosing the respective local authorities.

Taxes on products:

taxes shall be used exclusively for declared purpose (excise taxes on fuel shall only be used for building roads and improving the environment; excise duties on alcohol and tobacco – for health care);

application of consumption taxes cannot be used to create preferences for certain groups of goods as way to circumvent free competition;

all taxes and duties on goods shall be clearly declared to buyers along with the price of goods.

Taxes on legal entities:

any changes in tax policy affecting the amount of tax payments shall be predictive;

tax structure cannot give preferential treatment to certain scopes of entities in order to distort free competition;

responsibility of officials for tax reimbursements to taxpayers shall be the same as responsibility of taxpayers for their timely and full payment.

Local authorities shall have right to keep separate accounts for collection of taxes at any financial institutions.

Targeted taxes shall be booked on separate accounts at financial institutions without right of transfer for purposes not prescribed by law.

Flat tax rate shall apply in Ukraine on all types of income regardless of their origin and amount.

2. Permit System

We distinguish three groups of regulation creating prohibitions or obstacles for economic activity:

permits and procedures – any mandatory legal actions that must be met by business entities to conduct economic activity (certification, registration, etc.);

powers of regulating authorities – any enforcement action that regulating authorities may take against business entities to block their capability to carry out activities (for instance, the right to cease economic activities in the course of inspection);

product properties – any mandatory restrictions on quality and safety of products to be followed by enterprises (such as animal fat content in cheese, alcohol in wine, etc.).

We stand for minimizing all possible prohibitions and restrictions on economic activity viewing them as one of the main threats to economic freedom.

To this end, we believe that the mandatory properties of products, permits or respective powers of regulating authorities to intervene in economic activity shall exist only subject to simultaneous fulfillment of the three conditions:

necessary to protect people’s life or health, the environment;

reasonable and considerable scientific research and proven practical efficiency of measures applied;

not restricting free competition.

Any procedures not meeting these criteria shall be abolished.

In addition, introduction of restrictions and procedures for economic activity for fulfillment of international agreements shall be permissible only to minimally sufficient extent for such agreements.

Business entities shall have right to influence the cost and procedure for issuing such permits.

Any kinds of regulation may be carried out at the level of state authorities only when this role cannot be effectively exercised by self-regulatory organizations.

3. Prices

Free pricing is an essential element of economic freedom.

Each business entity shall have right to buy and sell any goods and services at free market prices.

Any government intervention in pricing other than that prescribed by anti-monopoly and anti-dumping regulation shall be deemed unacceptable.

Neither type of price regulation can be introduced in the market where there is free competition.

4. Capital Flows

Everyone has the right to freely dispose of one’s own capital at any time and in any manner and cannot be disqualified herein.

Every individual or legal entity shall be entitled to choose the type and currency of capital, institution and country of investment, time and way of transfer.

Taxes and any administrative encumbrances against capital transfer shall be unlawful.

5. Foreign Trade

State policy shall be aimed at maximum openness of foreign trade.

Any restrictions on imports or exports shall be unacceptable, except to establish similar but more stringent tariff and regulatory requirement than those imposed against Ukrainian business entities in other countries.

Consumers shall have right to get access to any goods and services from foreign markets. Protection of interests of domestic producers cannot take precedence over consumer rights protection in access to such goods or services. Protecting domestic producers may solely consist in creating similar business environment compared to foreign manufacturers.

6. Protection of Private Property

No one may be denied the right to own or manage one’s own property, except for compulsory repayment of obligations established by law.

Violation of private property right shall be entrenchment on human fundamental rights of business entities and shall lead to severe punishment.

Everyone has the right to defend one’s legitimate right to private property in any way, including by force of arms. No one has the right to set limits on sale or purchase of any property or right to use it.

Intellectual property has the same value as ownership of physical objects. However, duration of intellectual property rights cannot be unlimited, though shall be sufficient to motivate investments into its creation.

7. State-Owned Property

No business entities or assets whose primary objective is profit-making shall be state or municipally owned. No public institutions or business entities shall create competition to private entities.

Public institutions and business entities shall not perform functions that may be assigned to business entities or their self-regulated organizations.

All lands except for those managed by individuals, legal entities and public institutions and organizations shall be in communal ownership.

8. Government Debt

Government borrowings may be made only by the government for construction of infrastructure of national importance provided a realistic business plan for the project payback.

Local authorities may borrow only to build infrastructure of local importance provided a realistic business plan for the project payback.

Foreign currency borrowings by state or local authorities may be made only on condition that the expected income from investments will be denominated in borrowing currency.

The volume of government debt cannot exceed 60% of GDP.

State guarantees cannot be given to private companies, except under a public-private partnership.

 

Maryan Zablotskyy, Head and Founder of the UEFF;

Mykhailo Yakobchuk, Founder of the UEFF;

Jed Sunden, Founder of the UEFF;

Oleh Kolomiyets, Analyst and Project Manager at the UEFF.