Minister of Economy Ihor Petrashko expects to find such a version of the bill on amendments to the law on public procurement, which will satisfy international partners and will support the Ukrainian manufacturer.
“Without stimulating production in Ukraine and using public funds to purchase goods produced in Ukraine, there will be no significant progress in the country,” Petrashko told a news conference during the Ukrainian Forum “Ukraine 30. Coronavirus: Challenges and Responses” held on Tuesday.
According to the minister, all countries of the European Union and the United States use incentives to ensure that public funds primarily go to the purchase of those goods that are produced in their countries.
Petrashko said that at the moment consultations with the EU and the United States on the local content bill (No. 3739 on amendments to the law of Ukraine on public procurement) are underway, as the reaction to it is ambiguous.
The minister added that the use of non-price criteria will benefit Ukraine’s trade with the European Union and the United States.
“Therefore, we want to find a format of persuasion and find the version [of the bill] that will allow us to support the manufacturer,” Petrashko said.
SkyUp Airlines (Kyiv) since April 2020 has repeatedly addressed the President, the Prime Minister and the Minister of Infrastructure of Ukraine with letters asking to support the country’s aviation industry, the company has told Interfax-Ukraine.
It is noted that in June 2020, together with other enterprises of the industry, SkyUp appealed to the government with a request to provide state support to the industry. The appeal also outlined the problems the enterprises faced and proposals for their solution in cooperation with the state.
SkyUp emphasizes that, in addition to financial support, there can be many models of assistance – loans, loans under state guarantees, loans under the companies’ obligations, etc.
“The main thing is that this scheme is working, and there is a dialogue with the enterprises,” the company said.
“Today, the issue of state support for the industry remains open. Moreover, to date we have not received compensation for the special flights that were carried out to return more than 12,000 Ukrainians from Egypt in March,” SkyUp added.
Earlier, Ukraine International Airlines (UIA) stated that it had also repeatedly sent requests to the authorities about the need to support both the company itself and the Ukrainian aviation industry as a whole.
The independent and professionally governed National Bank of Ukraine (NBU) is critical for macro-financial support from the European Union and other international partners, Head of the EU Delegation to Ukraine Matti Maasikas has said.
“A strong, independent and professionally run NBU is critical to Ukraine’s financial stability, banking sector reform, investment, economic development to benefit Ukraine’s citizens, and macro-financial support from the EU and other international partners,” he wrote on Twitter on Thursday.
The Verkhovna Rada intends to amend the Tax Code of Ukraine to support culture, tourism and creative industries.
Some 273 MPs voted in favor of bill No. 3851 at first reading.
According to an explanatory note to the bill, the document proposes to introduce tax mechanisms to provide state support to the spheres of culture, tourism and creative industries in order to prevent their stagnation, preserve and create new jobs.
The bill, in particular, proposes not to tax corporate profits, income of individuals, and a single income tax in the form of a cultural grant.
According to the bill, a cultural grant means “targeted assistance in the form of funds or property, which are provided on a free and irrevocable basis at the expense of the national and/or local budgets, international technical assistance for the implementation of a project or a program in the fields of culture, tourism and creative industries.
In addition, in terms of value added tax, it is proposed not to tax operations on import into the customs territory of Ukraine (import of goods) that are part of the national cinematic heritage.
It is also proposed not to tax certain operations for the supply of national films until January 1, 2025, and from January 1, 2023 to January 1, 2025, not to tax operations on the supply of services for the demonstration, distribution and screening of national films and foreign films that are dubbed, voiced in the state language on the territory of Ukraine, provided that such films are adapted, in accordance with the legislation, in the Ukrainian language version for persons with visual and hearing impairments.
BENEFITS, CREATIVE INDUSTRIES, CULTURE, SUPPORT, TAX, TOURISM
President of Ukraine Volodymyr Zelensky submitted to the Verkhovna Rada a bill of Ukraine on government support for investment projects with significant investments – the so-called law on “investment nannies,” Deputy Head of the Presidential Office Yulia Kovaliv has said.
“I want to debunk the myths and memes about the ‘nannies’ that have flooded the media space and emphasize that this bill is primarily about providing a number of stimulating instruments of government support for investment projects,” she wrote on her Facebook page on Wednesday.
In particular, according to her, the bill provides for: securing investor guarantees by concluding a direct agreement with the Government of Ukraine for 15 years, appointing an investment manager authorized to accompany the investor in the process of preparing and implementing the project; providing tax benefits – exemption from income tax, exemption from payment of duties and VAT when importing new equipment into Ukraine; facilitating the provision of land necessary for the implementation of the project; building/reconstructing related infrastructure at the expense of the state (roads, electric and gas, heating networks, water networks, utilities, etc.).
“I want to note that the total amount of government support will be up to 30% of the amount of investment in the project,” Kovaliv said.
She said that this bill will support Ukrainian and foreign investors, whose investment amount should be at least EUR 30 million. They should create at least 150 new jobs with an average salary of workers at least 15% higher than the average salary in the relevant field in the region. Projects must be implemented in five years, and the duration of the special investment agreement with the government of Ukraine is 15 years.
The industrial community of Ukraine is against ordering 16 modern Mark VI patrol boats and the equipment they need for $600 million from the United States, the press service of the Ukrainian League of Industrialists and Entrepreneurs (ULIE) has said.
“The main duty of the authorities is to take care of the economic development of their own country, filling their own state budget, creating jobs at home. The orders in question only contribute to the growth of foreign budgets and stabilize the situation with employment in other states and do not help overcome crisis in our country. This is unacceptable and irresponsible,” the ULIE President, the chairman of the Anti-Crisis Council of Public Organizations, Anatoliy Kinakh, said.
In addition to ordering boats, industrialists pay attention to the purchase of imported locomotives and helicopters, which, in their opinion, could threaten serious socio-economic consequences for the whole country.
Kinakh emphasized that Ukraine has its own shipbuilding industry – highly professional production facilities, including in Mykolaiv, which are capable of building modern military boats and other small tonnage ships with a certain modernization.
“At this difficult time, the responsible government must develop both a national strategy for industrial and innovative development, and separate programs for shipbuilding, other priority areas of industry, to use all the levers to support the complex high-tech industry, starting from manufacturers’ access to credit resources, mitigating fiscal burden, changes in public procurement that would allow attracting public finances to load national producers,” he said.
