Legislative push for industrial recovery
Deputy Chairman of the Verkhovna Rada Committee on Economic Development Dmytro Kysylevsky announced that a new initiative to partially compensate capital investments through the tax system has gained strong support among Ukrainian industrialists.
Kysylevsky, together with over 50 MPs, registered two draft laws — No. 13414 and No. 13415 — aimed at adapting European practices to stimulate industrial development.
How the mechanism will work
The initiative proposes allowing enterprises to retain part of their taxes to offset capital investments. This applies to:
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corporate income tax,
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import duty,
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import VAT on production equipment,
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local taxes (land and real estate).
Compensation levels will depend on the size of the investment:
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up to 70% — for investments up to €1 million,
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50% — for investments up to €20 million,
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30% — for investments above €20 million.
Eligible capital investments include spending on equipment, construction, infrastructure, and land.
Strong business interest
“No other initiative in all the years of my parliamentary activity has attracted as much attention from industrialists as this one,”
— Dmytro Kysylevsky, Deputy Chairman of the Economic Development Committee.
The MP emphasized that the mechanism will align Ukrainian and EU conditions for capital investment, giving domestic businesses stronger incentives to modernize and expand production.
Bottom line: If adopted, the laws could create a powerful stimulus for Ukraine’s industrial revival — encouraging entrepreneurs to invest in new plants and equipment while accelerating the country’s economic recovery.
