“Today, the Verkhovna Rada will vote on Defence City: MP Venislavsky called for the inclusion of aviation in the initiativeThe Verkhovna Rada will consider draft laws on Defence City. MP Venislavsky called for the inclusion of the aircraft manufacturing industry in the initiative and to provide it with tax benefits, as it is an economic driver.
”, — write: unn.ua
Our country has all the capabilities to produce aircraft that are competitive on the world market. It is enough to recall our most successful aircraft, which have no analogues in the world. With the participation of European and American partners, we can replace imported parts that were once supplied from Russia, and bring unique equipment to the market. This applies to the “Mriya” and “Ruslans”, military transport aircraft, for the replacement of which Airbus developed the A-400, but it does not meet all the characteristics of our machines.
Fedir Venislavskyi emphasized that Ukrainian aircraft manufacturing is unique and should receive support at the state level.
“The Defence City regime should also extend to the aircraft manufacturing industry. Moreover, it needs separate preferences in the form of tax benefits: on land, on VAT, on profit. These enterprises are capable of becoming a driver of the Ukrainian economy,” he emphasized.
According to the parliamentarian, the development of the aviation and space industries has a multiplier effect on the economy, as it involves dozens of related enterprises and creates significantly greater added value than the state receives from taxation.
“Unfortunately, the tax committee did not take these proposals into account in the text of the draft law. I will call on my colleagues to vote in the hall. We will continue to convince them of the need to support aircraft manufacturing as one of the most promising areas,” Fedir Venislavskyi summarized.
RecallOn July 16, the Verkhovna Rada of Ukraine adopted in the first reading three key draft laws aimed at introducing a special legal regime of Defence City – to support the domestic defense-industrial complex. The documents provide for tax, customs, and budget benefits for participants of the special regime – until 2036.
At the same time, the aviation industry raised the alarm due to the disregard of its position when forming the Defence City regime, as well as due to too strict criteria for residents, which even such aviation flagships as “Antonov” and “Motor Sich” would not be able to meet. Aviation enterprises, through the Aerospace Association of Ukraine, submitted and advocated relevant amendments to support the industry, providing substantive arguments.
According to Nina Yuzhanina, a People’s Deputy, the inclusion of major aviation companies in the special regime is considered undeniably necessary.
In turn, Deputy Mykhailo Tsymbaliuk, commenting on aviation in Defence City, stated that state support is important for enterprises of all forms of ownership, because it is in synergy that they are able to restore Ukraine’s power in aircraft manufacturing.
Let’s addUNN obtained a list of amendments to one of the draft laws on the creation of Defence City, submitted by people’s deputies for the second reading. It is proposed to expand the list of residents by including aircraft manufacturing enterprises that fall under the Law “On the Development of the Aircraft Manufacturing Industry”. This will allow officially including aviation enterprises, defined by the Cabinet of Ministers as critically important for the economy and defense, in Defence City.
Regarding the threshold of income from defense activities, which is the entry point to Defence City, it is proposed to reduce the requirement to 40-50%, take into account annual, not just quarterly income, and include in defense income the production and maintenance of aircraft, engines, and components. Without this, even giants like SE “Antonov” risk being left out of the special regime and losing tax benefits. It is also proposed to include in Defence City enterprises that participate in international contracts for the export of military or dual-use technologies.
In addition, it is about canceling restrictions on the presence of tax debt, overdue contracts or dividend payments, as in wartime conditions this does not always indicate unreliability. Activities are affected by shelling, relocation, and supply disruptions. Instead, it is proposed to allow the inclusion of such enterprises in Defence City provided that the debt is repaid within three years.
Other amendments provide for the expansion of tax benefits for aircraft manufacturing (provided for reinvestment), customs preferences for critically important imports, state guarantees, and insurance of export contracts. The conditions for returning benefits in case of loss of compliance with the criteria are also clarified, including the prohibition of retrospective sanctions. The released funds should be directed to production development, modernization, research and development work, implementation of new technologies, personnel qualification improvement, and acquisition of intellectual property rights in the field of aircraft manufacturing.
Whether the parliament will take into account the submitted amendments regarding the aviation sector remains to be seen. At the same time, delay or disregard for the needs of the industry can have critical consequences: from the inability to ensure the technical serviceability of the Ukrainian Armed Forces’ aviation to the final decline of Ukrainian aircraft manufacturing and the outflow of qualified personnel.