Tax and other incentives to promote the use of biofuels are
being introduced under legislation passed by Parliament. This now
awaits the President's signature and will come into force once
officially published.
The incentives include an exemption from corporate profit tax
for 10 years from 1 January 2010 for all profits:
- from biofuel sales by biofuel producers
- from co-generation projects or heat generation by biofuel fed
power stations
- from sales of Ukraine-produced equipment used to make or
rebuild biofuel facilities, vehicles or power installations, by the
equipment producers
Other incentives being introduced from 1 January 2010
include:
- 9 years' VAT exemption (for 9 years) for imports of
equipment fed by bioethanol fuel and equipment to construct or
modernise facilities to produce biofuel and vehicles fed by biofuel
(as long as no equivalent equipment is produced or available in
Ukraine)
