“Defence City becomes a reality: the Verkhovna Rada adopted relevant draft lawsThe Parliament adopted draft laws for Defence City.
”, — write: unn.ua
DetailsFor draft law №13420 – on amendments to the Tax Code of Ukraine and other laws of Ukraine regarding the support of enterprises of the defense-industrial complex, people’s deputies gave 260 votes, for draft law №13421 – on amendments to section XXI “Final and Transitional Provisions” of the Customs Code of Ukraine regarding the support of enterprises of the defense-industrial complex, 258 deputies voted.
This refers to 10-year tax benefits for Defence City residents. Instead of the List of enterprises of the defense-industrial complex, a special Defence City Register is being created, which will be managed by the Ministry of Defense. Clear rules are established for residents: their status, conditions for obtaining, and control procedure will be determined by the Law “On National Security of Ukraine.” At the same time, the share of qualified income of a resident must be at least 75%, and for aircraft manufacturing enterprises – at least 50%.
Support tools for Defence City residents include providing tax benefits, in particular, exemption from income tax provided it is reinvested, as well as from land, real estate, and environmental taxes. Simplified customs procedures and simplified export control of military goods will apply to them. In addition, the National Bank of Ukraine will be able to establish features of currency supervision, and the state will provide support for relocation and increased security of production facilities.
“This is the foundation for the development of the Ukrainian defense-industrial complex, which will not only strengthen the state’s defense capabilities but also create new opportunities for investments, technologies, and jobs,” commented Danylo Hetmantsev, a member of the parliamentary faction of the “Servant of the People” political party, chairman of the Verkhovna Rada of Ukraine Committee on Finance, Tax, and Customs Policy, on the adoption of the Defence City draft laws.
In addition, before the final vote, Fedir Venislavskyi, a member of the parliamentary faction of the “Servant of the People” political party, chairman of the subcommittee on state security, defense, and defense innovations of the Verkhovna Rada of Ukraine Committee on National Security, Defense, and Intelligence, addressed those present in the Verkhovna Rada hall with a call to support aviation.
“We are currently considering very important laws, and my amendments, as well as the amendments of my colleagues, concerned a very sensitive branch of the Ukrainian economy, namely – aircraft manufacturing,” said MP Fedir Venislavskyi during the discussion of the draft laws in parliament.
According to the parliamentarian, as a result of long and complex negotiations, the Verkhovna Rada of Ukraine Committee on National Security, Defense, and Intelligence took into account the specifics of the aircraft manufacturing industry in the Defence City regime.
“Ukraine is currently among the top ten countries in the world that can independently manufacture aircraft from scratch to full readiness. Moreover, many Ukrainian developments have demonstrated their superiority in radio engineering characteristics over existing foreign analogues,” emphasized Fedir Venislavskyi.
RecallEven before the first reading vote on the Defence City package, aviation associations emphasized that residency in the initiative is critically important for the preservation and development of the industry. After all, since 2025, aircraft manufacturing has lost tax benefits and preferences that for a decade ensured stable operation and development of enterprises.
In order for Ukrainian aviation to continue to exist and develop, perform its part of the work to ensure the fulfillment of defense tasks, and preserve jobs for more than 40 thousand specialists, the Aerospace Association of Ukraine developed its proposals for consideration in Defence City. At the same time, the president of the association, Viktor Popov, emphasized that tax incentives for the industry have already proven their effectiveness and should be restored through the new regime. Only in 2017-2023, tax preferences freed up UAH 9.3 billion for enterprises, while the state received UAH 22.9 billion in tax revenues – meaning that for every hryvnia of incentives, the budget returned 2.5 times more.
Subsequently, amendments to the second reading of the relevant draft laws were introduced by people’s deputies. In particular, the aviation industry was supported by Fedir Venislavskyi, a member of the parliamentary faction of the “Servant of the People” political party. The parliamentarian noted that the proposed steps were important for preserving Ukraine’s aircraft manufacturing, which is unique and competitive even in the international market. In addition, according to the MP, Ukraine, with the participation of European and American partners, can replace imported parts that were once supplied from Russia, and bring unique equipment to the market.
AddThe proposals submitted by the deputies were aimed at integrating the aviation industry into Defence City and creating conditions for its development. They provided for the inclusion of aircraft manufacturing enterprises in the list of residents, taking into account annual income and activities in the field of aircraft maintenance, as well as expanding the list of defense industry companies, including those working on international contracts. It was proposed to introduce more flexible access conditions in wartime conditions, extend tax benefits provided they are reinvested, provide customs preferences and guarantees for export, and direct the released funds to modernization and research. Such tools are common practice in leading countries of the world and are especially important for Ukrainian aviation in wartime conditions.