11:15 29.02.2016

Ukroboronprom urging local town councils all over Ukraine to exempt defense enterprises from paying land tax

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Ukroboronprom urging local town councils all over Ukraine to exempt defense enterprises from paying land tax

The Ukroboronprom State Concern has asked lawmakers of local town councils all over Ukraine to consider the possibility of exempting local defense industrial companies from paying land tax.

The press service of the concern reported last week that Ukroboronprom Roman Romanov put forward the initiative.

He called on the lawmakers at local town councils to support the initiative of the Ternopil city council that provided a tax benefit to the manufacturer of antenna systems and satellite communications systems - Promin research and production enterprise – that resumed operations in the interests of the country's defense complex in 2015.

"Each saved hryvnia is development of the defense and industrial sector, designing and production of new samples and investment in the re-equipment of workshops," he said.

Earlier in January the Ukroboronprom asked the government to revoke the mandatory requirement to send 75% of profit to the national budget by defense and industrial enterprises that was introduced in the beginning of 2016, as this decision is not in line with the task set to the defense and industrial complex to provide for development of production and settling the task of replacing imported goods.

Romanov said that the loading of the Ukroboronprom's enterprises is 40% on average today, while in 2015 the concern sent UAH 685 million of own funds to development programs. The need for these purposes foreseen in the draft state program on development of the defense and industrial sector until 2020 is estimated at UAH 13 billion.

The concern said that total net profit of the Ukroboronprom's enterprises in 2015 reached UAH 1.626 billion, while in 2014 their net loss stood at UAH 348 million.

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