16:29 26.10.2016

Government allows Ukroboronprom to reduce share of profit paid to budget from 2017

2 min read
Government allows Ukroboronprom to reduce share of profit paid to budget from 2017

The Cabinet of Ministers has agreed from January 1, 2017 to reduce the share of paying profit to the national budget to 30% for companies that are part of Ukroboronprom state concern.

The relevant draft resolution prepared by the Ministry of Finance was approved at a Cabinet meeting on October 26.

As reported, the Ukrainian government from January 1, 2016 raised the rate of contributions to the national budget from the profit of state enterprises from 15-30% to 75%. The corresponding decision was stipulated in cabinet resolution No. 1156 of December 30. On December 24, 2015 the Verkhovna Rada adopted the law on amendments to the law on state property management that authorizes the government to set the size of profit payment to the budget for state enterprises over 30%. The government planned at the expense of these changes to provide additional revenues to the national budget in the amount of UAH 5.2 billion per year.

At the beginning of the year Ukroboronprom initiated the cancellation of this norm by the government for defense industry enterprises. Ukroboronprom said this decision is contrary to the task set for the enterprises to provide development of production and resolve the problem of import substitution.

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