11:20 22.12.2016

Rada annuls tax benefits for leasing imported planes with made-in-Ukraine analogs

Rada annuls tax benefits for leasing imported planes with made-in-Ukraine analogs

Ukraine's Verkhovna Rada has backed the annulment of tax benefits for imports of planes to Ukraine under operation leasing contracts that have analogs made in Ukraine.

Bill No. 3458d amending the Tax Code of Ukraine and some Ukrainian laws regarding support of aircraft building industry was passed at second reading with 246 supporting votes late on Tuesday.

The document removes the VAT free beneficial regime for imports of planes weighing from 10 to 30 tonnes and capable transporting from 44 to 100 passengers. According to an explanatory note to the bill, analogs of these planes are made by Antonov State Enterprise (An-140, An-148 and An-158). The enterprise can produce up to 12 these planes a year. After re-equipment the enterprise could increase production to 24 these planes a year.

The bill envisages the extension of the tax beneficial period for imports of goods used for designing, production, repair, modification and servicing aircraft until January 1, 2025.

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