President Volodymyr Zelensky has made crucial decisions to enhance the domestic defense sector with the launch of Defence City. This was announced by Defense Minister Denys Shmyhal.
On August 21, Ukrainian lawmakers approved two significant bills: No. 13420 "On amendments to the Tax Code of Ukraine and other laws to support defense enterprises" and No. 13421 "On amendments to the Customs Code of Ukraine to support the defense industry enterprises".
The official website of the Verkhovna Rada confirms that bill No. 13420 has been signed by the President, while information regarding No. 13421 is currently unavailable.
The Defense Minister noted that Defence City provides several benefits for weapon and military equipment manufacturers, including:
- Exemption from profit tax if reinvested;
- Exemption from land and property tax when used in production;
- Exemption from environmental tax;
- Simplified customs procedures;
- Special regime for international transfer of defense products;
- State support for relocation issues and protection of production capacities.
"Manufacturers of strategic importance for the country's defense capability will have the opportunity to openly join Defence City," added Denys Shmyhal.
Prior to the vote on the laws, three major Ukrainian associations expressed their views on the new regime, highlighting the initiative's significance. More details can be found in the article "Oboronka": "The idea is good, but how will it be implemented? Weapon manufacturers shared their thoughts on the Defense City reform.".
