The Verkhovna Rada has supported at the repeated second reading bill No. 3760 on government support for investment projects with significant investments (the so-called “investment bill”) valued at EUR 20 million and more, which, in particular, provides for the exemption of such projects from paying certain taxes.
An Interfax-Ukraine correspondent has reported that the bill was supported by 252 MPs with the required 226 votes.
According to the materials to the bill on the parliamentary website, in the version of the document for the second reading, the equivalent of the amount of “significant investments” has been reduced from EUR 30 million to EUR 20 million. Also, for the second reading, the committee proposed to expand the list of areas for projects that can be qualified for government support.
In the document for the repeated second reading, it is indicated that an investment project with significant investments should be implemented, in particular, in the following areas: processing industry (except for the production and circulation of tobacco products, ethyl alcohol, cognac and fruit, alcoholic beverages), further processing and/or enrichment of minerals (except for coal and brown coal, crude oil and natural gas), waste management, transport, warehousing, postal and courier activities, logistics, education, scientific and scientific and technical activities, health care, art, culture, sports, tourism and resort and recreational sphere. MP Nina Yuzhanina said during the discussion of the bill that one of the amendments supported by the Rada profile committee additionally establishes a possibility of providing government support to investors in the field of iron ore dressing in the transitional provisions.
According to the bill, projects that create at least 80 jobs with a salary 15% higher than the average salary in the region can count on government support. For the repeated second reading, the deputies clarified the term of the special investment agreement – this is an agreement concluded between the Cabinet of Ministers, an investor making significant investments, an applicant and a local government body (if they are provided with government support).
As the main legal department of the Verkhovna Rada apparatus said in its opinion to the bill, its norms provide preferences for non-payment of taxes and fees. This is contrary to the memorandum with the International Monetary Fund (IMF) signed on June 2, 2020.
The legal department recalled that in the memorandum, Ukraine undertook to refrain from introducing new tax benefits, with the exception of those already adopted in connection with COVID-19.
