Parliament hikes depreciation rate by 25 p.p. to promote industrial modernization

Yesterday the Verkhovna Rada of Ukraine approved a law that allows industrial enterprises to increase depreciation rate by 25 p.p. The law is targeted at supporting Ukraine’s ailing industry (in November, industrial production dropped 28.6% yoy) and promoting modernization of fixed assets. Andrii Parkhomenko: The law would let industrial companies to increase the portion of income directed at modernization thanks to increased tax shield. However, the effect of the law will be substantially lagged, thus the law itself will doubtfully help the economy out of crisis in the short term.