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Main Business Ukraine is launching a "National Cashback" programme, which will return 10% of the cost of goods

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Ukraine is launching a "National Cashback" programme, which will return 10% of the cost of goods

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Ukraine is launching a "National Cashback" programme, which will return 10% of the cost of goods

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The Ukrainian Cabinet of Ministers has approved the procedure for providing financial assistance to citizens under the "National Cashback" programme. According to this procedure, citizens will receive a 10% refund on the cost of Ukrainian-made goods they purchase. The programme will start on September 2, 2024. The decision was approved during a government meeting on August 20, 2024.

Funds obtained through the cashback can be used for various services, including medical, utility, sports, cinema, train tickets, and more. They can also be donated to the Ukrainian Armed Forces or used to purchase military bonds. The maximum cashback amount is 3,000 UAH per month.

“Cashback is a way to financially support Ukrainians, especially ahead of the heating season, as funds received from the cashback can be used, among other things, to pay utility bills. The government has previously implemented similar programmes, such as eSupport during COVID-19. At that time, over 10 million Ukrainians opened bank cards to receive state funds and spent over 3.5 billion UAH on books, cinema, medicine, travel tickets, gym memberships, and theater tickets.

Cashback, as a form of state support, is more effective for the economy than simply providing funds, as it creates additional demand for Ukrainian goods. This generates jobs in Ukraine and ensures tax revenue. Up to 40% of the money spent on Ukrainian products returns to the budget as taxes and goes towards the needs of the Armed Forces. During COVID-19, we encouraged Ukrainians to get vaccinated through assistance. Now, through state support, we are fostering another healthy habit—buying local goods,” emphasized First Deputy Prime Minister of Ukraine and Minister of Economy Yulia Svyrydenko.

Cashback will be provided for Ukrainian-made goods, including medicines and medical products. Cashback will not apply to excise goods. Participation of buyers, producers, and sellers in the programme is voluntary. Whether cashback is available for a specific product in a specific store will be indicated by the store. This can also be checked on the programme's website.

To receive cashback, citizens need to open a special account and obtain a virtual or physical card from their bank or app. They must agree to share transaction data from purchases made with selected cards. Then, in the Diia mobile app, they can select the National Cashback service.

“More than 20.7 million Ukrainians are already using the Diia app. Therefore, it is a convenient tool for every citizen to receive payments under the ‘National Cashback’ programme. The service will be available to Ukrainian producers and sellers who can apply to participate in the programme, as well as to those who purchase Ukrainian goods. In a few clicks, users will be able to check the amount of accumulated and paid cashback and then spend it on specific services,” noted Vice Prime Minister for Innovation, Education, Science, and Technology, and Minister of Digital Transformation Mykhailo Fedorov.

Accumulated funds will be credited to the created card once a month by the 20th of the following month. For example, cashback for goods purchased in September will be credited by October 20. Cash withdrawals from the cashback account will not be possible. Funds from cashback earned in 2024 must be used by January 31, 2025.

“By introducing cashback, the government aims to provide financial support to citizens who buy Ukrainian goods. Through this program, many will be able to pay utility bills for the upcoming heating season on time. This will help ease the financial burden on many Ukrainian families. The government constantly implements such measures. For instance, during the early stages of the full-scale invasion, 6,500 UAH in state aid was received by almost 5 million people totaling 30.8 million UAH. For some, this was an opportunity to cover their urgent needs,” emphasized Minister of Social Policy Oksana Zholnovich.

Producers and sellers can join the programme through the Diia portal. Major retail chains and consumer goods producers have already confirmed their participation in the programme.

According to the First Deputy Prime Minister and Minister of Economy of Ukraine, the National Cashback programme will also promote the formalization of trade. Cashback will only be provided for purchases made electronically and reflected in fiscal receipts. Therefore, only traders who ensure the transmission of information about financial transactions and are on the general tax system can participate. This will enhance the transparency of financial operations and support legal business.

The National Cashback programme is coordinated by the Ministry of Economy of Ukraine. The project involves the Ministry of Digital Transformation of Ukraine, the State Tax Service, the settlement bank—Oschadbank, and authorized banks of Ukraine. The technological partner for the programme is the international payment system Mastercard, and the operational partner is the international payment technology company Visa.

The Odessa Journal
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