Draft Law #4251 amending the Budget Code of Ukraine regarding the stimulation of the circulation of special permits for subsoil use (Draft Law), was withdrawn from consideration of the Verkhovna Rada of Ukraine.
The Draft Law was aimed at introducing a new tax, namely, a fee for the use of subsoil areas of minerals, the amount of which will depend on the area of the subsoil area and the type of minerals.
The American Chamber of Commerce in Ukraine welcomes the withdrawal from consideration of the Draft Law, as the application of the proposed usage fee simultaneously with the payment of the rental fee will be an excessive financial burden and will in no way affect the efficiency of the subsoil use.
The Chamber continuously advocates for the betterment and further development of the upstream sector in Ukraine. In this regard, the Chamber member companies’ experts would like to underline that Draft Law #4252, amending the Tax Code of Ukraine regarding the stimulation of the circulation of special permits for subsoil use, duplicates the negative provisions of Draft Law #4251, and it must be refined considering the position of the industry representatives. The Chamber looks forward to continuing fruitful dialogue with stakeholders on the abovementioned issue.