The Verkhovna Rada of Ukraine plans to introduce a special tax regime for the defense industry (DI). This was announced by the head of the tax committee, Danilo Hetmantsev, who noted that the country intends to support the rapid restoration of weapons production, which began in 2022.
This is reported by Finway
Hetmantsev reminded that 40 years ago, Ukraine was one of the most developed countries in the defense industry, with specialized clusters in various regions, such as the rocket and space cluster in Dnipro, the shipbuilding cluster in Mykolaiv, and the armored vehicle cluster in Kharkiv. However, the thoughtless conversion of the 1990s led to the decline of enterprises, which in turn affected the Armed Forces’ capabilities during the full-scale invasion by the Russian Federation.
“The thoughtless conversion of the 1990s turned enterprises into bankrupts or into companies producing different products. Technologies, potential, and markets were lost. As a result, at the beginning of the full-scale invasion, the Armed Forces were not provided with either sufficient technologies or weapons,” said the deputy.
Hetmantsev also emphasized that to support the defense industry, a decision from the Cabinet of Ministers of Ukraine is needed to allow the export of military products. Additionally, there are plans to create a special legal and tax regime for defense enterprises.
Deputy Head of the President’s Office, Pavlo Palisa, noted that at the moment, Ukraine cannot find alternatives to certain types of American weapons and ammunition; however, the defense industry is working on this. In particular, efforts are underway to create its own air defense systems, operational-tactical missile systems, as well as to develop ammunition for the already obtained air defense systems.