fbpx
Size of letters 1x
Site color
Image
Additionally
Line height
Letter spacing
Font
Embedded items (videos, maps, etc.)
 

Business calls to prevent fiscal pressure and extrajudicial termination of special permits for subsoil use

10/ 07/ 2025
  The European Business Association expresses deep concern over certain amendments to the draft Law “On Amendments to the Tax Code of Ukraine in connection with the adoption of the Law of Ukraine ‘On Integrated Prevention and Control of Industrial Pollution’.” The draft law was adopted in the first reading and is currently being prepared for the second reading. The comparative table for the second reading includes proposals that could have extremely negative consequences for the extractive industry: Extra-judicial termination of special subsoil use permits in the event of tax arrears amounting to approximately UAH 3,000. According to experts from the EBA Subsoil Use Committee, this initiative contradicts the principle of legal certainty, creates significant corruption risks, and violates Ukraine’s international commitments regarding the stability of investment conditions. In particular, it could breach the Ukraine–US Agreement on the establishment of the Recovery Investment Fund. Increase in land tax rates for mining enterprises — from 3% to 8% for land plots with a normative monetary valuation and from 5% to 12% for plots without such valuation. The business community believes this could lead to higher production costs, reduced extraction volumes and export revenues, and a decline in the sector’s investment attractiveness. The ЕВА stresses that the extractive industry is a cornerstone of the country’s resource security. It holds substantial potential for economic growth, accounting for up to 60% of Ukraine’s export capacity. Under current circumstances, it is crucial to avoid additional pressure on the sector and instead create opportunities for its development — through tax incentives, transparent regulation, and adherence to the principles of legal stability. The EBA Subsoil Use Committee calls on Parliament to refrain from adopting changes that could undermine investor confidence and, instead, to focus on reforms that support the sustainable development of the industry.

The European Business Association expresses deep concern over certain amendments to the draft Law “On Amendments to the Tax Code of Ukraine in connection with the adoption of the Law of Ukraine ‘On Integrated Prevention and Control of Industrial Pollution’.” The draft law was adopted in the first reading and is currently being prepared for the second reading.

The comparative table for the second reading includes proposals that could have extremely negative consequences for the extractive industry:

Extra-judicial termination of special subsoil use permits in the event of tax arrears amounting to approximately UAH 3,000. According to experts from the EBA Subsoil Use Committee, this initiative contradicts the principle of legal certainty, creates significant corruption risks, and violates Ukraine’s international commitments regarding the stability of investment conditions. In particular, it could breach the Ukraine–US Agreement on the establishment of the Recovery Investment Fund.

Increase in land tax rates for mining enterprises — from 3% to 8% for land plots with a normative monetary valuation and from 5% to 12% for plots without such valuation. The business community believes this could lead to higher production costs, reduced extraction volumes and export revenues, and a decline in the sector’s investment attractiveness.

The ЕВА stresses that the extractive industry is a cornerstone of the country’s resource security. It holds substantial potential for economic growth, accounting for up to 60% of Ukraine’s export capacity. Under current circumstances, it is crucial to avoid additional pressure on the sector and instead create opportunities for its development — through tax incentives, transparent regulation, and adherence to the principles of legal stability.

The EBA Subsoil Use Committee calls on Parliament to refrain from adopting changes that could undermine investor confidence and, instead, to focus on reforms that support the sustainable development of the industry.

If you have found a spelling error, please, notify us by selecting that text and pressing Ctrl+Enter.

Start
in the Telegram bot
Read articles. Share in social networks
Nationwide Minute of Silence
01:00
09:00
Nationwide Minute of Silence
Let us honor the memory of all those who lost their lives in russia’s war against Ukraine
00:43

Spelling error report

The following text will be sent to our editors: