Industrial Parks Reloaded: VR Passing the Law

8 Сен

Verkhovna Rada (VR – the parliament of Ukraine) in the second reading supported the bill on industrial parks that envisages a number of incentives introduced to attract investments.

The MPs adopted corresponding changes at a meeting on 7 September, they were supported by 290 people’s deputies (MPs).

The bill defines objects that can be located in the industrial park. E.g., in such a territory it will be possible to engage in the processing industry, waste processing (except for disposal), scientific and technical activities including those in the field of information / telecommunications.

It will be prohibited to produce excisable products (except for cars and other vehicles), to go in for gambling business.

Industrial Parks Reloaded: VR Passing the Law

The draft law provides for at least annual UAH 2Bn of budgetary funds for the development of industrial parks– from 2022 to 2025.

Management companies and initiators of a park creation are to be entitled to partial compensations of the expenses on connecting and entering the power networks, interest payments on loans (depending on the share of exported domestic products in the total income from activities).

In addition, the budget will partially compensate for the industrial parks participants’ investments in the production development carried out during the first three years of economic activity within the industrial park.

To ensure tax and customs benefits for participants of industrial parks, the corresponding bills 5688 and 5689 have been registered.

The document also provides for the establishing an authorized state body to implement government’s policies regarding the industrial parks operation. It shall be created by January 1, 2025.

Let’s remind:

Government plans to build the infrastructure for 25 industrial parks by 2024, for this purpose a corresponding bill has been developed for the second reading.

VR has approved in the first reading amendments to Law of Ukraine on Industrial Parks envisaging introduction of a number of incentives to attract investments in the industrial parks.