Ukrainian lawmakers back tax breaks for domestic drone producers
A Ukrainian marine holds a FPV-drone during a flight training, amid Russia's attack on Ukraine, in Dnipropetrovsk region, Ukraine, May 15, 2023. (Reuters Photo)


Ukraine's parliament voted on Monday to exempt domestic drone producers from customs duties and value-added tax, a senior lawmaker said, in a move intended to help a sector that Kyiv sees as vital for its war effort.

The exemptions laid out in two bills backed by lawmakers cover imports of equipment and other parts for the production and repair of drones, lawmaker Yaroslav Zheleznyak wrote on the Telegram messenger.

The bills still require President Volodymyr Zelenskiyy's approval before they go into force.

Ukraine sees drones as a low-cost way to narrow its huge armament gap with Russia, a nuclear power whose long-range conventional capabilities enable it to conduct air strikes on targets across Ukraine.

The Ukrainian defense ministry has said it works with over 80 drone manufacturers.

In previous conversations with Reuters, Ukrainian drone manufacturers and non-governmental organizations have cited customs regulations as a big challenge to increasing production volumes.

The Verkhovna Rada, or parliament, has continued to convene in Kyiv through Russia's full-scale invasion, but its sessions are now closed to the public.

The country also uses exported combat drones, particularly the Bayraktar TB2 unmanned combat aerial vehicle (UCAV) that Kyiv purchased from Turkish drone magnate Baykar.

These drones have gained worldwide popularity after being used on the battlefield by several forces, including the Turkish Armed Forces (TSK), Azerbaijan, and the Ukrainian military. They have proven themselves useful against Russian heavy military gear, from tanks and howitzers to air defense systems.