Almost every second consumer assumes that he (she) buys contraband. And business believes that almost a quarter of goods are smuggled.
Why do Ukrainians choose smuggling? People complain about poverty, while smuggled goods are cheaper. And sometimes people just don’t know they’re buying contraband. At the same time, most understand that smuggling is bad for the economy and prosperity. But many people still choose such goods, and thus close the circle of economic problems and low welfare.
Smuggling creates unequal conditions for business. Smugglers do not pay taxes, so their goods are cheaper. This pushes honest producers out of the market, and opportunities for business growth are narrowed. In the worst case, we have to reduce production, or even close and lay off workers.
Not only producers but also legal importers find themselves in unequal conditions. Every tenth importer believes that “gray” imports are a serious obstacle. As a result, lower state and community incomes mean that there is not enough money for medicine, education, culture and the army.
Smuggling only: deepens economic problems, weakens the state and communities, negatively affects the level of welfare. And this creates poverty and further contributes to the demand for smuggling, closing the circle of problems.
What can the state do? Do not stop and create a modern, efficient, honest and transparent customs. What can each of us do? Do not buy smuggling and support honest business.
Buy “white” – support the honest.The video was prepared with the financial support of ATLAS Network. The content of the video is the sole responsibility of the «Institute for Economic Research and Policy Consulting» and does not necessarily reflect the position of the ATLAS Network. The project “Support to the public initiative” For fair and transparent customs “” is implemented with the financial support of the European Union, the Renaissance Foundation and the ATLAS Network.