The Ukrainian aviation industry is actively advocating for the reinstatement of tax preferences that lapsed in 2024. Industry experts and associations argue that these returning benefits could generate approximately 55 billion hryvnias in tax revenues over the next decade, facilitating modernization, innovation, and job creation during a period of significant operational challenges due to the ongoing war.
Supporters explain that the previous tax exemptions enabled enterprises to invest in new equipment, develop new aviation solutions, and maintain employment levels, critical as the sector faces interruptions caused by military conflicts, logistical issues, energy disruptions, and infrastructure attacks. They emphasize that these measures are strategic investments aimed at strengthening Ukraine's defense industry and preparing for the eventual revival of civilian air traffic.
The Aerospace Association of Ukraine estimates that each hryvnia of tax support could lead to over three hryvnias in future tax revenues, illustrating a high economic return. The end of these benefits in December 2024 has already resulted in decreased tax revenues from the aviation sector, signaling risks to the industry’s future. Experts warn that without these incentives, Ukraine may lose technological independence and vital personnel, with effects that could last for decades.
Restoring tax advantages is viewed as crucial to preserving Ukraine’s aviation infrastructure for both civilian and defense purposes. Policymakers are urged to implement these measures to support economic resilience and ensure the sector’s long-term sustainability in the face of ongoing conflict.
