On September 2, beta testing of the “National Cashback” program began, which will last for about a month. During this time, it is planned that new stores and manufacturers of goods will join the system, and consumers will register. The initiative aims to encourage Ukrainians to buy domestic goods, help them save money in a period of economic instability, and also support the national producer. In the article below, we have compiled the key things you need to know about the program.
Key conditions of the program
As part of the “National Cashback” project, the state will return to consumers 10% of the purchase price of Ukrainian-made goods. Cashback applies to Ukrainian-made goods that participate in the program, except for excise goods (alcohol, tobacco products and fuel). According to the terms of the program, the minimum amount of cashback per month is UAH 2, the maximum amount is UAH 3,000.
Cashback will apply to those products whose manufacturers have registered in the program, as well as in those stores that meet the conditions of the program and are registered in it.
The accrued cashback will be available for verification in the Diya application the very next day after the purchase of a product or service, and cashback payments will be made once a month – until the 20th of the following month, that is, consumers will receive compensation for September purchases in a special account until October 20. Cashback accrued for 2024 can be used until January 31, 2025.
What can you spend cashback on?
Cashback funds cannot be withdrawn in cash – they can only be used for non-cash payment of services, in particular: medical services, sports, cinema, restaurants, payment of utilities, transport, mobile communication. Also, the received compensation can be spent on supporting the Armed Forces or buying military bonds.
How to join the business?
Currently, more than 600 manufacturers and more than 20,000 retail outlets have joined the “National Cashback” program, more than 38,000 products have been registered. Among the well-known retail chains are Comfy, Epicenter, Novus, Pharmacy of low prices, etc. The rest can be viewed at program website.
For manufacturers to join the National Cashback program:
- Sign up for Action portals. Any producer of consumer goods whose production facilities are located in Ukraine can join the program.
- Submit an application for inclusion in the List of Ukrainian manufacturers and confirm your application with an electronic signature (KEP).
- Submit an application for inclusion of your products in the List of Ukrainian goods and confirm it with the KEP.
For a seller to join the National Cashback program:
- It is necessary to be on the general taxation system.
- Submit an application to join the List of Sellers through the Diya Portal and confirm it with the KEP.
- Label participating products for consumers (however, labeling is optional).
How to register as a consumer
The user needs to issue a card in his bank (virtual in the application or physical in the branch), on which the state will charge cashback. The special card will be used exclusively for operations within the cashback program, it can be used only to pay for services included in the approved list. Other financial operations or crediting of funds to this card are not possible.
Next, also in the banking application or at a bank branch, you need to give permission for the transfer of transaction data from your selected cards when buying goods in stores that have joined the program.
After that, you need to update the Diya mobile application and select the “National Cashback” service. In the application, you need to specify the number of a special card to which monthly cashback will be credited.
When buying goods from Ukrainian manufacturers that participate in the program, in participating stores you just need to pay with a registered bank card as usual. The system automatically recognizes purchases that are eligible for the program and calculates cashback.
Currently, the following are participating in the “National Cashback” program: PrivatBank, Oschadbank, Sense Bank, A-bank, PUMB, Ukrsibbank, monobank (Universal Bank), Ukreximbank, Bank Globus, Ukrgasbank, Bank Credit Dnipro. As PrivatBank reported, in the first days of the program’s launch, 313,000 Ukrainians have already opened special Mastercard digital cards “Cashback “Made in Ukraine” at the bank.
Criticism
A number of experts and analytical centers criticized the “National Cashback” program and even published a joint appeal to the authorities with a call to abandon this program. According to analysts, the implementation of the proposed support mechanism for domestic producers is financially burdensome for the State budget and difficult to administer. “In addition, the constitutional rights of Ukrainian citizens will be violated in terms of gaining access to their private life, namely their purchases. The cashback mechanism, which operates exclusively through retail networks, will distort the conditions of competition in the retail market,” the appeal states.
Experts are convinced that state support for the domestic producer should be implemented by ensuring a favorable business and investment climate in the state, eliminating bureaucracy and corruption, protecting property rights, reforming the tax and law enforcement system, ensuring rights and economic freedoms for domestic business in Ukraine.
