Mining companies are asking the Parliament to reject a number of amendments to the Tax Code
The National Association of the Extractive Industry of Ukraine has appealed to Chairman of the Verkhovna Rada Committee on Finance, Tax and Customs Policy Daniil Getmantsev and MPs with a request to reject amendments No. 70, 71, 34 and 96 to the draft amendments to the Tax Code: these amendments not only contain risks of corruption abuses, but also discriminate against the extractive industry. This is stated in the official message of the Association.
"Since the beginning of the full-scale war, the GPU has regularly highlighted the predicament of the mining industry. The changes proposed and mentioned above will reinforce the negative trends for businesses operating under war conditions. An increase in the tax burden will lead to a reduction in exports and production, and Ukrainian products will become uncompetitive on world markets," the appeal says.
The NADPU noted that amendments No. 70 and No. 71 on raising land tax rates by 2.5 times will lead to a significant increase in the cost of production, which will become a critical factor for many enterprises that are already operating on the verge of profitability. In addition, the 0.25 coefficient, which is currently applied, is not a benefit for the industry, because they actually pay taxes four times for the benefits received from one hectare of land: income tax at a total rate of 18%, rent for the use of mineral resources, payment for the disposal of low-hazard mining waste and land tax.
For comparison, agricultural enterprises (in particular agricultural holdings) pay only a single tax of the fourth group at a rate of 0.95% of the standard monetary valuation (NGO) of land, which is three times less than the basic land tax rate. At the same time, the average single tax in Ukraine is only 250 UAH per hectare per year, which is significantly lower than the burden on mining enterprises. Thus, these amendments will deepen tax discrimination between sectors.
"Currently, iron ore plants are loaded at only 60% of the pre-war level. Exports of titanium ores have fallen by 91% (compared to the same period in 2024). If these amendments are adopted, enterprises that are already operating on the verge of profitability will stop, and the state will lose foreign exchange earnings, tax revenues and thousands of jobs," the GPU stressed.
As for amendments No. 34 and No. 96, which provide for the possibility of termination of a permit for the use of mineral resources in the event of a tax debt of more than UAH 3,060 for two quarters, they will lead to increased corruption risks, because with the help of this provision, government agencies can blackmail businesses, actually forcing them to pay illegal benefits, threatening