The government plans to introduce new tax incentives for business
The new legislation provides Ukrainian businesses with five significant incentives to work in frontline communities and in the de-occupied territories, but expects them to participate more actively in the creation of comprehensive recovery programs for communities and regions. This was stated by Olena Shulyak, chairwoman of the Verkhovna Rada Committee on the Organization of State Power, Local Self-Government, Regional Development and Urban Planning, RBC-Ukraine reports citing her speech.
She said that comprehensive recovery programs are the main strategic planning document for the reconstruction of each of the almost 1,500 Ukrainian territorial communities, and more than 200 communities are currently developing them. However, despite the openness of these documents and, accordingly, proposals to them, business is not involved in their discussion. It is crucial to fix this.
"When creating a CBC, communities carefully analyze a huge number of factors. Not only the damage caused by Russian aggression, but also the economic and demographic potential of the territory are at the top of the list. And it is the business that determines what the economy of the region can be like, without which the creation of a high-quality PCV is impossible," Shulyak said.
According to her, business participation and conditions for its development are extremely important in the context of creating and implementing legislation that will regulate the country's comprehensive recovery - the draft law "On the Basic Principles of Recovery". The first version of the draft law was published in May this year, after which large-scale public consultations were held to finalize its provisions.
During the public consultations, proposals were received from business representatives. And this group emphasized planning and prioritization of recovery, responsibility, transparency, digitalization, and elimination of bureaucracy. According to Ukrainian business, these are the foundations for adequate recovery and development of the country.
"Today, Ukrainian business pays taxes, which the country uses to protect us from the enemy, business also provides jobs, and creates European-level services and products. Therefore, the government should definitely listen to the voice of business and its needs and 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," Shulyak said.
"In particular, we are talking about:
- Financial incentives (additional subventions, grants or preferential financing of the municipal and private sectors) or other forms of financial support for entrepreneurs who decide to start or expand their business in these territories;
- Tax incentives for entrepreneurs and individuals;
- Supporting innovation and encouraging investment;
- Promotion of local production and consumption;
- Information support for entrepreneurship and training.
As a reminder, almost EUR 1 billion is allocated for the needs of community restoration under the Ukraine Facility program, which provides for Ukraine to receive EUR 50 billion by 2027. These funds - €1 billion - will go directly to 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 interaction with international partners.
Author: Oleksandr Moroz.