It is planned to exempt from VAT and customs duties the import of components for the production of demining machines: The Rada has taken the first step

It is planned to exempt from VAT and customs duties the import of components for the production of demining machines: The Rada has taken the first step

Kyiv  •  UNN

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The Verkhovna Rada passed in the first reading a draft law on exemption from VAT and customs duties on imports of components for the production and repair of mechanized demining machines, which aims to address the problem of significant mine contamination of Ukraine's territory during the war.

The Verkhovna Rada has adopted in the first reading a draft law that provides for exemption from value added tax and customs duties on the import of goods for the production and/or repair of mechanized demining machines. This is reported by UNN with reference to MP Yaroslav Zheleznyak and the bill card №11258.

The Parliament supported #11258  on amendments to the Tax Code and on exemption from VAT and customs duties on import of goods for the production and/or repair of mechanized demining machines. For the basis - 308

- Zheleznyak wrote.

The draft law proposes to temporarily, for the period of martial law in Ukraine, exempt from customs duty and value added tax operations on the importation into the customs territory of Ukraine under the import customs regime (including those previously placed under other customs regimes) of components (materials, components, assemblies, equipment and components, including machine sets) imported by business entities for use in their own production activities for the manufacture and/or repair of mechanized demining machines.

The explanatory note to the draft law states that Ukraine is potentially the most mined country today.  About 174,000 square kilometers remain mined, and given the ongoing hostilities, the area of mine contamination will grow faster than the volume of demined areas.

The main manufacturers of mechanized demining vehicles are Croatia, Switzerland, Denmark, Turkey, and the United Kingdom.

Reportedly, there are currently several companies in Ukraine that are trying to produce such machines domestically, which in turn creates additional jobs. However, at this stage, the production of mechanized demining machines requires foreign components. Value added taxation on imported components significantly increases the cost of mechanized demining machines, which our country needs in significant quantities given the area of mine contamination.

According to the authors of the document, the adoption of this draft law will create favorable conditions for the production of mechanized demining machines that will participate in humanitarian demining of the territory of Ukraine.

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