Ukrainians will receive up to UAH 3000 cashback for purchases of Ukrainian goods: Government launches new program

The Cabinet of Ministers of Ukraine has approved a procedure for providing financial assistance to Ukrainians called National Cashback. According to it, citizens will receive compensation for 10% of the cost of Ukrainian goods purchased by them. The program will be launched on September 2, 2024. The relevant decision was approved at a government meeting on August 20, 2024.

The funds received under the cashback program can be spent on medical, utility, sports, movie, train tickets, and other services. Or you can donate to the Armed Forces or buy military bonds. The maximum cashback amount is UAH 3 thousand per month.

"Cashback is an opportunity to support Ukrainians financially, especially before the start of the heating season, because the funds received from cashback can be spent, in particular, on utility bills. The state has already had experience with similar programs, for example, eSupport during COVID-19. Back then, more than 10 million Ukrainians opened bank cards to receive funds from the state. They spent more than UAH 3.5 billion on books, movies, medicines, travel tickets, gym memberships, or theater tickets.

Cashback as a form of state support for citizens is more effective for the economy than just providing funds, as it creates additional demand for Ukrainian goods. It creates jobs in Ukraine and generates tax revenues. Up to 40% of the money spent on Ukrainian goods is returned to the budget in taxes and goes to the needs of the Armed Forces. During COVID-19, we encouraged Ukrainians to get vaccinated by providing assistance. Now, through government support, we are developing another healthy habit - buying local goods," said Yulia Svyrydenko, First Vice Prime Minister of Ukraine and Minister of Economy.

Cashback will be provided for Ukrainian-made goods, including medicines and medical devices. The cashback will not be applied to excisable goods. Participation of buyers, producers and sellers in the program is voluntary, so the store will inform the buyer whether cashback is available for a particular product in a particular store. This can also be checked on the program's website.

To receive cashback, a citizen needs to open a special account and receive a virtual or physical card from his or her bank or the application. Consent to the transfer of transaction data when purchasing goods from selected cards. And then select the National Cashback service in the Diia mobile app.

"The Diia app is already used by more than 20.7 million Ukrainians. That is why it is a convenient tool for every citizen to receive payments under the National Cashback program. The service will be available for Ukrainian manufacturers and sellers who will be able to apply for participation in the program. It will also be available to people who buy Ukrainian goods. In a few clicks, you will be able to check the amount of cashback accrued and paid, and then spend it on certain services," said Mykhailo Fedorov, Deputy Prime Minister for Innovation, Education, Science and Technology - Minister of Digital Transformation.

The funds accumulated during the month will be transferred to the created card once a month until the 20th of the following month. For example, cashback for goods purchased in September will be credited to your account by October 20. It will be impossible to withdraw cash from the account where cashback funds are credited. Cashback funds accrued in 2024 can be used until January 31, 2025.

"By introducing cashback, the Government aims to provide financial support to citizens who buy Ukrainian goods. With this program, many will be able to pay for utilities on time for the next heating season. This will help relieve some of the financial burden on many Ukrainian families. The government is constantly implementing similar solutions. As an example, the support for Ukrainians at the beginning of the full-scale invasion. 6500 UAH of financial assistance from the state was provided to almost 5 million people for 30.8 million UAH. For some, this was an opportunity to cover their basic needs," emphasized Oksana Zholnovych, Minister of Social Policy.

Manufacturers and sellers of goods will be able to join the program through the Diia portal. Major retailers and manufacturers of consumer goods have already confirmed their participation in the program.

According to the First Vice Prime Minister - Minister of Economy of Ukraine, the National Cashback will also contribute to the de-shadowing of trade. Cashback will be credited only for purchases made by cashless payments and reflected in the fiscal receipts of sellers. Accordingly, only merchants that provide information on settlement transactions and are subject to the general taxation system can participate in the program. This will help to increase the transparency of financial transactions and support legal business.

The National Cashback program is coordinated by the Ministry of Economy of Ukraine. The project is implemented by the Ministry of Digital Transformation of Ukraine, the State Tax Service, the settlement bank Oschadbank, and authorized banks of Ukraine. The international payment system Mastercard is a technological partner in the program implementation. The operational partner of the project is Visa, an international payment technology company.