MPs from the inter-faction union UKROP propose to amend the Tax and Customs Codes of Ukraine in order to abolish payment of value added tax and import duties while importing equipment facilities for reconstruction, modernization or creation of new enterprises. Tax-free funds should stimulate job creation, GDP growth and import substitution in Ukraine. The draft laws are registered in Parliament under the numbers 6214 and 6215. This has been stated during a press briefing in the Verkhovna Rada by the MP from UKROP Oleksandr Dubinin
“These are very important draft laws, and now small, medium and even large businesses are waiting for them,” said Oleksandr Dubinin.
According to him, a draft law on amendments to the Customs Code of Ukraine stipulates abolishment of import duty until 1 January 2030 for equipment facilities, intended for reconstruction, modernization of existing or creation of new enterprises provided creation of at least 150 new jobs for the large business and involvement of 50 or 25 new employees for small and medium enterprises. If requirements regarding the intended use of this production are violated, the taxpayer should pay the duty and late fee in the manner and amount determined by the Customs Code. The same conditions are proposed by the UKROP representatives for granting the entrepreneurs remission of VAT payment – according to the draft law on amendments to the Tax Code of Ukraine. In addition, the document proposes to abolish income tax for companies that have managed to create new jobs by producing import-substituting products after importing equipment facilities. In case of production misuse the taxpayer is obliged to pay obligations according to the results of the tax period of such violations and pay additional penalties.
“If these laws are adopted and signed by the President, Ukraine will be able to stimulate the growth of GDP and domestic businesses, job creation and production of import-substituting goods. We expect the economic growth primarily due to job creation,” said Oleksandr Dubinin, calling on his colleagues to support these legislative initiatives.
Exemption from VAT and import duties will not be applied to goods originating from the aggressor country.
It is to be recalled, Oleksandr Dubinin is also the author of a bill on zero rate of import duty for woodworking machinery, which has increased the volume of wood processing by 20% in 2016.
