Businesses in affected communities will receive tax preferences

Businesses in the territories of de-occupied and frontline communities are to be granted tax breaks and low interest rates on loans. This is envisaged in the draft law "On the Basic Principles of Recovery." However, its authors believe that the list of potentially effective preferences for business should be expanded.

This was announced during the third stage of the public consultations "Effective and Transparent Recovery Policy" held jointly with the NGO "Institute Respublica" by Olena Shulyak, Chairperson of the Committee on Organization of State Power, Local Self-Government, Regional Development and Urban Planning, Head of the Servant of the People Party.

According to her, the draft law "On the Basic Principles of Recovery" is currently being finalized in accordance with the proposals made by all stakeholders involved in this process. In particular, the factors that will influence the decision on which settlements Ukraine will restore as a matter of priority and which, unfortunately, may not be restored are subject to revision. One of the factors that will determine the possibility of recovery is the socio-economic potential of the community, which in turn will depend on what kind of business will operate on its territory. Accordingly, it is necessary to provide incentives for it.

"In this difficult time, Ukrainian communities should focus on comprehensive support for businesses that not only create jobs but also finance the costs associated with the defense of our country by paying taxes. We have provided a number of incentives for entrepreneurs who will come to work in de-occupied or frontline communities in the draft law "On the Basic Principles of Housing Policy," but we understand that they may not be enough, so we ask you to join in their proposal and development," said Olena Shulyak.

She presented a list of potential preferences that, according to the drafters of the bill, will ensure a comprehensive approach to the restoration of communities destroyed during the hostilities. These are:

- Infrastructure support - providing access to critical infrastructure (roads, electricity, water, internet, medical and educational services);

- Financial incentives (additional subventions, grants, or preferential financing for the municipal and private sectors) or other forms of financial support for entrepreneurs who decide to start or expand their business in these areas;

- Tax incentives for entrepreneurs and individuals;

- Supporting innovation and encouraging investment;

- Promotion of local production and consumption;

- Information support for entrepreneurship and training.

"Regardless of whether our communities are under temporary occupation, whether there are hostilities in these territories, or whether the communities are frontline, we need to think about the future now. We will continue to work to involve residents and local activists as much as possible in discussing the future recovery process," emphasized Shuliak.

The parliamentarian reminded that almost 1 billion euros are provided for the needs of community recovery under the Ukraine Facility program, which provides for Ukraine to receive 50 billion euros by 2027. These funds - €1 billion - will go directly to the communities, so it is very important that they are as ready as possible to implement quality projects on the ground. To do this, communities need people who have project management skills, who are familiar with economic issues, and who are familiar with interacting with international partners.