The Accounting Chamber backs up the reduce of the Airport deductions to the budget
03 December 2019
On Thursday, 28 November 2019, Boryspil Airport hosted on-site meeting of the Transport and Infrastructure Committee of the Verkhovna Rada of Ukraine in terms of The Status of Boryspil International Airport State Enterprise, Challenging Issues and Future Development.
Pavlo Riabikin, the Airport CEO, gave a tour across the enterprise for the deputies and their assistants, the representatives of the Ministry of Infrastructure and the State Aviation Authority of Ukraine before the meeting of the Committee, having covered both, the Airport achievements and the challenging issues, requiring support of the authority.
The People’s deputies saw the apron development near Terminal D, emergency and rescue stations, Terminal F, equipment for winter season, hangar for aircraft and visited air traffic control center of UkSATSE.
While opening the meeting, the Chairman of the Transport and Infrastructure Committee of the Verkhovna Rada of Ukraine, Mr. Yurii Kisel, emphasized the importance of Boryspil International Airport for the country.
According to the Committee’s agenda, consideration of two issues was envisaged: the first one – the prospects of multimodal transport hub development on-site Boryspil Airport, and the second one – consideration of the Accounting Chamber report “On the Results of the Audit of the State Budget Funds Use and Property Management by the State Enterprises in the Field of Aviation Transport and Ukrainian Air Space Use in terms of Boryspil International Airport Operation”.
While discussing the first issue of the agenda, the Airport CEO drew attention to the Airport development and challenges as well as stressed on the importance of the Airport development as a hub and provided explanations regarding the issue “what is a hub”.
According to the ICAO forecasts the number of passengers on the routes of Europe, Asia and America during the following 10 years will double. All these passengers are a source of air carriers’ incomes. Taking into account that Boryspil Airport is located in the center of air routes between the Europe and Asia – Ukraine has all chances to create a leading European hub, – Mr. Riabikin noted in his speech.
The Participants of the discussion came to the conclusion that aviation is a driver of the Ukrainian economy, that is why the government has to take efficient measures to support the field.
Ms. Iryna Ivanova, the member of the Accounting Chamber, who is responsible for the area of the Ministry of Infrastructure, reported on the second issue of the agenda. She drew attention to the necessity of a stable dividend policy that will allow the enterprise to perform a long-term development planning.
The Cabinet of Ministers of Ukraine adopted the resolution, which increased the dividends amount from 40% to 90%. Such amount of dividend deductions to the budget makes impossible the implementation of the previously approved Financial Plan for 2019 and will have negative impact on the Airport operation, – Ms. Ivanova reported.
The Committee at the meeting decided to promote the legislative support concerning creation of equal conditions for liquidation of discrimination norms for Ukrainian air carriers. In particular, to recommend the Verkhovna Rada of Ukraine to adopt the draft Law “On Amendments to the Tax Code of Ukraine regarding stimulation of domestic aviation transportation market development” in terms of VAT cancellation for domestic flights.