After the ban on the simplified taxation system, 1,316 Internet service providers withdrew from the Ukrainian register, i.e. ceased to exist legally. Another 1,000 may do so within a month.
This was reported by Oleksandr Fediyenko, Chairman of the Verkhovna Rada Subcommittee on Cybersecurity.
“After the State Tax Service of Ukraine began destroying small businesses of Internet providers, I wondered how many entities that provided Internet access services would cease to operate. So I asked the National Commission to provide statistics,” he says.
The answer he received shocked the MP from the Servant of the People:
1,316 entities were removed from the regulator’s register, meaning they ceased to exist.
“I don’t know where they went, we can assume that some of them closed down, some went into the shadows, and left the regulator’s supervision. Some may be for sale. But these are people! These were self-employed citizens of Ukraine,” Fediyenko said.
He predicts that in a month another thousand providers will leave the register, and the pressure from the tax authorities will stop only when there are only a dozen providers left.
Before the change in the tax regime, the number of Internet providers was about 3.5 thousand. According to the National Commission, 3,443 operators reported on fixed-line Internet access services in the first half of the year. That is, their number has already fallen by 38%, and according to the MP’s forecast, it may fall by 67% in two months.
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