10 октября 2006

    The Ukrainian Journal of Business Law / October 2006

    The decision on reinstatement of Free Economic Zones taken by Ukraine will unconditionally make a positive impact on the international image of the State.

    Having performed their investment obligations in good faith, the investors will receive the opportunity to continue their work under the conditions of the specified taxation procedure.

    I cannot consent to the statements of some politicians stating that while using Free Economic Zones some light-fingered entrepreneurs were engaged into escaping taxation while exporting huge amounts of money.

    First I have never heard about opening a criminal case related to any abuse in the Free Economic Zones. Second point is that when realizing any investment project an investor receives any deductions, he creates new jobs, develops new technologies that undeniably leads to the improvement of economic situation both in the region and in the whole country.

    Therefore I can only greet the reinstatement of Free Economic Zones.

    At the same time I consider that along with enacting a law on reinstatement of one Free Economic Zone or another, the Parliament shall impose moratorium on cancellation of taxation deductions for the period of every investment project operation.