New tax rules will advance the development and technological upgrading of production
New tax innovations
launched this year that encapsulate,
among other things, VAT deferral when importing equipment and spare
parts which have no equivalents
in Ukraine and lowering the
rent when new gas wells
are put into
operation, will promote the development
and technological renewal of production
in Ukraine. According to Prime
Minister of Ukraine Volodymyr Groysman, the said
incentives were worked out with
entrepreneurs and discussed in the
Parliament with the participation of a wide range
of experts.
"Today it
is vitally important to ensure
the modernization of the national
economy, to renew the fixed
assets of enterprises, equipment ... To this end
we introduce installment of payment for 24 months in order
not to take
tight credits for the purchase
of equipment and to pay interests
on a loan and another 1 tax
(value added). We must revive
the national industry and we
can do it
when we eliminate
barriers that are being put
on the introduction
of new productions
in the country," the Head of Government
underlined.
The incentive on
VAT deferral for industry was aired
in the summer
of 2017, based on the results
of the relevant
experiment in the pharmaceutical and wood industry.
It was then
when the Prime Minister initiated a broad discussion on the
issues of the successful launch of initiatives
in other sectors, which could become new
drivers of growth for the
economy.
Reduction of rent
payments in the field of
gas production were also the
subject of discussions in the expert environment.
In November 2017, on the initiative
of the Head
of Government, a large meeting was
held with the participation of key mining
enterprises, which resulted in a proposal
aimed to simplify licensing procedures and reduce rental rates
to 12% when drilling new wells.
The Prime Minister underlined this step would
become an impetus for sectoral
development and achievement of the proper level
of gas production.
Volodymyr Groysman drew
attention to the fact that
changes in gas production are of utmost
importance because state companies
and private structures demonstrate extraction, renewal of fixed assets,
and the introduction
of new technologies.
At the same
time, the officials dealing with licensing and granting of
permits - both at the level
of the central
and at the
level of local authorities are rarely stand
in the way.
“I will not
tolerate those who create barriers
to a policy of energy independence
. All actors are to be
in equal conditions as well
as to obtain
permits to meet the existing
requirements. By the end of
the year, we have to
make specific decisions, in particular,
to simplify licensing procedures, so that we
are moving in the direction
of gaining energy independence, as well as
on new wells
- reducing rent payments. This may be a factor
in increasing investment (in the development of extraction)," underscored the Prime Minister.
Apart from that,
the Head of Government stressed
that the "autumn of reforms"
should become the basis for
"spring of changes" in the field of
ease of doing
business and industrial development.