People's deputies from the Verkhovna Rada Committee on National Security, Defense, and Intelligence submitted amendments to the draft laws on the creation of Defence City with a proposal that aircraft manufacturing enterprises receive the same preferences as other participants in the defense-industrial complex, writes UNN.
Details
Last week, the Verkhovna Rada adopted in the first reading three draft laws (No. 13420, No. 13421, and No. 13422-1), which provide for amendments to the Tax, Customs, and Budget Codes, respectively, and are aimed at stimulating the development of the defense industry. Despite the general approval of the initiative, experts emphasize an important aspect that has not yet been taken into account in the texts of the draft laws. The aircraft manufacturing industry, which provides repair and modernization of aircraft and helicopters, which, among other things, are used at the front, currently does not fall under the criteria of Defence City, and accordingly remains without benefits.
Hennadiy Kasai, a member of the Verkhovna Rada Committee on National Security, Defense, and Intelligence, emphasized in an exclusive comment to UNN that aircraft manufacturing enterprises need support and preferences.
Regarding the Defence City bill. Together with my colleague Ihor Kopytin, we submitted amendments to include aviation industry enterprises there. Because it will be very important for the development of our country, so that we remain an aviation state that develops aviation capabilities. We ask our colleagues (to support these amendments - ed.)
Kasai reminded that earlier, together with his colleague Serhiy Shtepa, he submitted a separate bill aimed at returning tax benefits that were in effect until the end of 2024, and currently the document is being processed by the government.
Parliamentarians emphasize that supporting the aviation industry is very important in order not to lose it. After all, this is a real tool for strengthening defense capabilities - it is Ukrainian specialists who are able to modernize helicopters, repair foreign equipment, and create their own developments.
MP Mykhailo Tsymbalyuk, in an exclusive comment to UNN, emphasized that without state support, the aircraft manufacturing industry will not survive and Ukraine may lose its achievements.
We supported in the first reading three draft laws that concern the support of the arms and ammunition production industry. I am sure that the aviation industry should also be included in the list. Moreover, the Ministry of Defense will form this, I believe that Denys Shmyhal (Minister of Defense - ed.), as a person with management experience, should definitely pay attention to this area and include in preferential taxation, in addition to other enterprises of the military-industrial complex, all those enterprises of various forms of ownership that during the war repair, manufacture parts, modernize and service aircraft of various types.
In his opinion, supporting the aircraft manufacturing industry will allow, among other things, to preserve human resources.
Because only specialists can modernize helicopters, military aircraft, and repair, including those foreign models that are currently transferred by our partners. If the state supports this industry, then the human potential, which is very important, will be preserved. If it is not used here, in Ukraine, then those specialists will definitely be invited to other European countries.
Recall
Before the full-scale invasion of Russia into Ukraine, the aviation industry remained one of the few high-tech industries that maintained a full production cycle. Ukraine remains in a limited club of states capable of designing, manufacturing, modernizing, and servicing aviation equipment. With the beginning of the full-scale war, enterprises partially reoriented themselves to defense needs and, despite everything, are trying to preserve their potential in civil aircraft manufacturing. But today they find themselves in conditions that are more like a struggle for survival than for development, and for them, the return of state support is important.
Until January 1, 2025, the strategically important aviation industry for the state enjoyed tax and customs benefits and preferences, which for years allowed aircraft manufacturing enterprises to develop. However, with the expiration of their term, companies were left alone with military challenges. The lack of state support for them means a loss of competitiveness, outflow of personnel, and suspension of projects, as the cost of production significantly increases, and opportunities to earn money due to the war are almost non-existent.
Therefore, representatives of the Aerospace Association warn that without changes to the draft laws on the creation of Defence City or the adoption of a separate law, the country risks losing one of the key high-tech industries.