Parliamentary committee backs additional incentives for UAV manufacturers

The Verkhovna Rada Committee on Finance, Tax and Customs Policy has recommended expanding tax and customs incentives for UAV manufacturers. The proposals are set out in draft laws No. 14169 and No. 14170, submitted to parliament, according to Danylo Hetmantsev.

The draft laws would permit the import of components not only for production and repair, but also for the modernisation of UAVs, and would simplify customs procedures. According to the explanatory notes, the changes would ease the process of altering the designated use of imported goods and introduce clear tax rules for equipment rendered unserviceable or destroyed during testing, accidents or other force majeure circumstances.

The documents cover not only unmanned aerial vehicles but also combat simulators, electronic warfare systems and other defence technologies.

The Ukrainian Council of Defence Industry has expressed general support for the parliamentary initiative. Speaking to Defender Media, Valentina Vedrovska, Head of Government Relations, said the legislative changes would enable market participants to operate more flexibly and respond faster to evolving frontline requirements. “UAVs are precisely the kind of product that often breaks during tests and trials, especially when it comes to new models or upgrades to existing systems. It is therefore important to account honestly for the cost of components that will never reach the frontline but remain an essential part of product development,” Vedrovska said.

At the same time, the organisation stressed that localisation of production remains a strategic goal, meaning Ukraine should work towards the gradual removal of tax and customs exemptions for imports in areas where domestic manufacturing already exists or could emerge.

“What can be produced in Ukraine today must be able to compete with imports, rather than losing out because of distortions in tax and customs treatment. Incentives should help us get through the wartime period and build capacity, not entrench dependence on imported components,” Vedrovska said.

Last week, Defender Media reported that Verkhovna Rada approved, in the first reading, draft law No. 13392, which promotes the state procurement of Ukrainian and locally assembled defence products.