The Verkhovna Rada has approved Draft Law No. 4380 on administrative service fees at Administrative Service Centers (ASCs) in the first reading, according to MP Vitalii Bezghin. A total of 273 MPs voted in favor.

Why is this an important step not only for the development of ASCs in Ukraine but also for improving the overall culture of public service delivery? This was explained by Viktor Tymoshchuk, Deputy Chair of the Board of the Centre of Policy and Legal Reform, and Yurii Mykytiuk, Head of Regional Programs at the RPR Coalition.

“Free” Services at ASCs

Ukrainians use ASC services daily, and about 90% of the roughly 400 services are provided free of charge.

But “free” means their cost is covered by the budget. Viktor Tymoshchuk explains: “From the local budget — which funds ASC operations — at best, only about 30% of expenses can be recovered, but only for staff salaries and facility maintenance. Expenses for IT systems, equipment, and all other essentials to ensure proper functioning usually remain unfunded. During wartime, with a massive budget deficit and most resources directed toward defense, this becomes a real problem: people are quitting, salaries at ASCs are extremely low, especially in large cities.”

A populist idea persists that the state should cover this financial gap. However, the result of years of offering such “free” services is that many government agencies have already begun closing local branches because they lack funding to maintain them. For example, the State Migration Service, StateGeoCadastre, and Ministry of Justice are all downsizing in smaller communities.

“People use administrative services unevenly. Some apply for a passport, others register as private entrepreneurs, and some use no services at all. So a logical question arises: why should I, through my taxes, pay for someone else’s passport or car registration? That has nothing to do with me. Each of these services is an individual benefit and should at least be partially paid for by those who use them,” explains a CPLR expert, highlighting another side of the “free” services debate.

There is also a serious issue with unregulated payments and corruption risks. In some areas, there are already illegal fees being charged for administrative services.

So now there are two options: either honestly admit that services must be paid for, or stick to the narrative of “free” services — in which case, they will become less accessible to the public, and corruption will grow.

What Will the Draft Law Change?

The bill proposes setting fees for about 150 of the most common services — ranging from 50 to 1,200–1,300 UAH depending on complexity and the need for official forms. Individuals would pay for the service, and municipalities would use the revenue to maintain their ASCs, preserve access points, and ensure high-quality service delivery.

Yurii Mykytiuk emphasizes: “We need to be honest: ASCs across the country — and the quality of administrative service delivery as a whole — are at risk of institutional stagnation. Passing Draft Law No. 4380 in the first reading is an important step to support ASC operations and maintain high-quality services for Ukrainians.”

The European Integration Aspect

The obligation to adopt such a law is referenced in the Ukraine Report 2024 — the European Commission’s annual enlargement report. In the section where the EU praises Ukraine’s ASC system and service delivery network, it also notes that Ukraine needs to adopt legislation on administrative fees.

The European Union — both as an institution and through individual member states — helped create ASCs in Ukraine and develop digital services. But this system requires financial sustainability. Ukrainian citizens should support it through their taxes, just as citizens in EU countries do.

This legislative requirement is also reflected in the roadmap for public administration reform. Viktor Tymoshchuk adds: “Poland has such a law, so does the Czech Republic, and Estonia too. Yes, the approaches may vary, but in most countries, it works very clearly: there is a transparent fee table — the citizen opens it and sees the cost of the service.”

Passing this law will not only strengthen the ASC network and improve the service delivery system overall, but also bring Ukraine closer to the best European practices — and to the European Union itself.

We thank all MPs who stood up to populist criticism and voted for the bill — now we look forward to the second reading.