Diia.City United calls for finalizing some provisions of Defence City initiative before second reading
The Diia.City United business association supports the idea of creating the Defence City concept, but at the same time proposes to finalize the package of bills before the second reading, as it believes that it does not fully create the proper prerequisites for the development of the industry and does not take into account the already effective tools to support the technological business.
As stated in the union's press service statement on Friday, it is proposed to expand the range of companies covered by guarantees, in particular for technological businesses that sell dual-use goods or software (including royalties), R&D companies, all residents of the Diia.City space engaged in defense technologies and dual-use technologies, as well as R&D in the defense industry.
"Companies should be able to choose a tax regime depending on their business model and production process. Other advantages of Defence City (simplified procedures, guarantees, protection) should be available to all companies operating in the industry, including residents of Diia.City, regardless of the chosen taxation system. This is the key to the development of the entire defense and technology sector," Diia.City United said.
In addition, the business association insists on creating a transparent system of controlled exports and emphasizes the need to create clear, predictable and digital control procedures. Currently, the bills contain only general declarations, while Ukraine needs an effective system that will strengthen the country's defense capabilities, enable Ukrainian private companies to develop and attract investment, create conditions for opening R&D centers of international companies in the country, and facilitate its integration into the EU and NATO supply chains.
Diia.City United also believes that the export of goods and software products will become an additional source of additional foreign exchange earnings and tax revenues, improve investment attractiveness and help companies prepare for a decrease in government orders after the war.
In addition, it is proposed to strengthen the protection of data of defense companies. This requires closing data on defense technology companies, their owners and managers not only in the Unified State Register, but also in public registers and databases (including public procurement, statistics, property data). This will make it impossible for the enemy to identify people and locations working for defense, and reduce the risks of sabotage and espionage.
The union also draws attention to the simplification of customs procedures for all market participants, because during import, the norms of the draft laws should apply not only to companies from the Defence City register, but also to everyone working on defence technologies or dual-use technologies, including residents of Diia.City.
According to the report, Diia.City United supports the decision to open criminal proceedings against defence companies, which was made at the level of the Prosecutor General. It expects that this will protect manufacturers from unjustified pressure, provide additional legal protection for defence contractors and increase their immunity in criminal proceedings.
"The Defence City initiative is important for the victory and reconstruction of Ukraine, but requires further development in a broad dialogue with the defence technology sector. Diia.City United is ready for a constructive dialogue and cooperation with people's deputies to create truly effective legislation," the union said.
Diia.City United is a technology business alliance united to unlock the potential of the Ukrainian technology sector and ensure its global growth. It includes over 140 Ukrainian and international companies and investors, including venture and investment funds.
