The Rada expanded tax and customs benefits for defense procurement

The Verkhovna Rada expanded tax and customs benefits for purchases by the Security and Defense Forces and Ukrainian arms manufacturers. The parliament exempted from some payments the import of ATVs and components for the production of weapons, drones, electronic warfare equipment, and ammunition.

On September 3, deputies adopted in their entirety two related draft laws - No. 15463-1 and No. 15464-1. The tax law was supported by 271 deputies, the customs law by 272.

Draft law No. 15463-1 provides for exemption from VAT and excise tax on the import of ATVs for the needs of the Security and Defense Forces. In addition, VAT exemption is granted for the import of components used in domestic production of weapons, drones, electronic warfare equipment, and ammunition.

The second document, No. 15464-1, introduces corresponding exemption from import duty for ATVs and components necessary for the production of weapons, drones, electronic warfare equipment, and ammunition.

Another important change concerns funding sources. The new rules aim to unify the application of tax and customs benefits regardless of the funds used for a specific defense procurement.

The parliament explained that previous regulation created differences in customs clearance depending on the financing mechanism. The changes aim, in particular, to eliminate obstacles to the implementation of state contracts, international treaties, intergovernmental agreements, and military, security, and technical assistance programs.

The benefits also extend to quadricycles and ATVs purchased for the needs of the security and defense sector. Such equipment is used by the military for mobile movement, logistics, and performing tasks in areas where the use of conventional road transport is difficult.

Immediately after the vote, the Verkhovna Rada as a separate decision instructed the speaker of parliament to urgently sign both adopted laws and send them to the President. 273 deputies voted for this. To enter into force, the documents still have to undergo the procedure of signing and official promulgation.

The draft laws were registered in early August. Earlier, the relevant parliamentary committee recommended supporting the alternative drafts No. 15463-1 and No. 15464-1 instead of the original versions of the legislative changes.

Based on materials from: Verkhovna Rada of Ukraine, Verkhovna Rada of Ukraine, official portal of the Verkhovna Rada