The Verkhovna Rada adopted in the first reading a package of draft laws on a special tax regime for Ukrainian defense enterprises Defence City, but without the controversial initiative to decriminalize the failure of orders, which was criticized by experts and public organizations.
The Verkhovna Rada adopted in the first reading a package of draft laws on a special tax regime for Ukrainian defense enterprises Defence City, but without the controversial initiative to decriminalize the failure of orders, which was criticized by experts and public organizations.
As reported by MP Yaroslav Zheleznyak, the basis for the vote was bills No. 13420, No. 13421, and No. 13422-1, but without the previously proposed changes to the Criminal Code, which sparked critical discussion. Recall that initially four bills were submitted to the Rada.
At the same time, Danylo Hetmantsev, co-author of the draft laws and chairman of the VRU Tax Committee, noted that the draft laws on Defence City are being prepared in cooperation with the Ministry of Defense and industry representatives.
«The dialogue with businesses will continue, particularly during the preparation of draft laws for the second reading,» he promised.
We remind you that the draft laws provide for the introduction of a List of defense industry enterprises (Residents of Defence City), which will be formed and maintained by the Ministry of Defence, as well as tax authorities until January 1, 2036, in particular:
However, the provision proposed by one of the draft laws of the Defence City package was met with mixed reactions: it was proposed that arms manufacturers who would become residents of Defence City would be exempted from criminal liability for breaching government contracts, in particular, if they acted to meet the needs of the Armed Forces or other security sector structures or if the breach did not cause harm to life, health, the environment, or defense capability.
In addition, the Public Anti-Corruption Council under the Ministry of Defense voiced a number of significant comments on the draft laws.
The «Armorers' Council», despite generally supporting the idea of the draft laws, also expressed a number of critical comments on individual norms that could create obstacles for market participants.
dev.ua also collected the opinions of a number of market participants on this issue, in particular drone manufacturers.
