--- title: "Hetmanets explains the refusal of tax holidays for business: priority of defense and targeted assistance to the affected" description: "The head of the Verkhovna Rada Finance Committee, Danylo Hetmanets, explained that the impossibility of introducing general tax holidays is due to the need to finance the army, but confirmed the existence of assistance mechanisms for those affected by shelling." date: 2026-08-19T06:20:00.000Z lang: en url: https://xab.info/en/posts/hetmanets-explains-refusal-of-tax-holidays-priority-of-defense tags: [ukraine-economy, danil-getmantsev, tax-policy, war-economy, business-support] publisher: "XAB.info" --- # Hetmanets explains the refusal of tax holidays for business: priority of defense and targeted assistance to the affected ![Ukrainian Finance Minister Serhiy Holovkin explains the refusal of tax holidays for business, emphasizing defense priority and targeted aid to the affected](https://xab.info/media/2026/08/19/getmantsev-otkaz-ot-nalogovyh-kanikul-prioritet-oborony/getmantsev-otkaz-ot-nalogovyh-kanikul-prioritet-oborony-1.webp) ## 🎯 Key Points - General tax holidays are impossible due to the need to finance defense. - Mechanisms for deferral and force majeure are in effect for those affected by shelling. - 11,000 enterprises have already used tax support tools. - The state cannot directly compensate for the billion-dollar losses of businesses from strikes. In the context of the ongoing war, the issue of economic support has become one of the key priorities for the government and the business community. However, as Danylo Hetmanets, head of the Verkhovna Rada Finance Committee, stated in an interview with RBC-Ukraine, introducing general tax holidays for all enterprises at this stage is impossible. According to the deputy, tax revenues are a critically important resource for financing the defense sector and ensuring the functioning of the armed forces. ### Priority of defense financing Danylo Hetmanets emphasized that the state budget for 2026 is operating in a mode of strict economy and resource redistribution. Any significant reduction in tax revenues, which nationwide holidays could cause, would directly impact the state's ability to maintain the Armed Forces. "Tax revenues are necessary to finance defense," explained the committee head, pointing out the impossibility of taking such risks in the current geopolitical situation. ### Mechanisms for supporting affected enterprises Despite rejecting universal benefits, the state already has tools in its arsenal to assist companies that have become victims of Russian shelling. Hetmanets clarified that if a real estate object or warehouse has been physically destroyed, no tax arises on it anyway. For enterprises whose activities have been paralyzed, more flexible mechanisms are provided. In particular, companies can count on a tax installment plan or deferral, a decision on which is made by the Minister of Finance. ### Force majeure tool and statistics The deputy paid special attention to the force majeure mechanism, which was introduced back in 2022. This tool allows an enterprise to be exempted from tax obligations if it objectively cannot fulfill them due to military actions. According to Hetmanets, 11,000 enterprises have already used this mechanism. The decision to apply force majeure is made by the Tax Service based on provided evidence of the impossibility of conducting business activities. ### Problem of warehouse infrastructure and mobilization A separate acute topic of discussion was warehouse logistics. Property owners are afraid to rent their premises to retail chains due to the high risk of strikes, and some current landlords are demanding that warehouses be vacated. Hetmanets believes this is a pragmatic business calculation, and the state should offer alternative sites. Furthermore, entrepreneurs are asking to take into account the specifics of warehouse work when mobilizing employees, as relocating hubs requires a significant amount of physical labor that is difficult to replace. ### Billion-dollar losses and lack of direct compensation The head of the Finance Committee also reminded that Russian strikes on warehouses and logistics centers have already led to billion-dollar losses for Ukrainian businesses. However, he warned that the state cannot directly compensate for these losses due to a lack of necessary funds in the budget. Thus, business support will be targeted, focusing on preserving the country's defense potential. ## πŸ” Fact-Check Verification - [No tax holidays for everyone: Hetmanets explains risks for army financing](https://www.rbc.ua/ukr/news/podatkovih-kanikul-vsih-bude-getmantsev-poyasniv-1787120163.html) - Основной источник Ρ†ΠΈΡ‚Π°Ρ‚ ΠΈ Ρ„Π°ΠΊΡ‚ΠΎΠ² ΠΎ ΠΌΠ΅Ρ…Π°Π½ΠΈΠ·ΠΌΠ°Ρ… ΠΏΠΎΠ΄Π΄Π΅Ρ€ΠΆΠΊΠΈ. - [Why tax holidays are impossible in wartime conditions](https://novosti.ua/economic/nalogovye-kanikuly-dlya-biznesa-nevozmozhny-iz-za-potrebnostey-oborony) - Π”ΠΎΠΏΠΎΠ»Π½ΠΈΡ‚Π΅Π»ΡŒΠ½Ρ‹ΠΉ контСкст ΠΏΠΎ нСвозмоТности ΠΊΠ°Π½ΠΈΠΊΡƒΠ». ## ❓ FAQ ### Q: Why are tax holidays not being introduced in Ukraine? **A:** The state cannot afford a reduction in tax revenues, as they are critically important for financing defense and the army. ### Q: How does the state help businesses affected by shelling? **A:** Deferrals and installments on taxes are provided, as well as a force majeure mechanism that exempts from obligations if they cannot be fulfilled. ### Q: Does the state compensate for losses from destroyed warehouses? **A:** There are no direct budget compensations due to a lack of funds, however, tax is not levied on destroyed objects.