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A new rise of environmental taxes will not lead to environmental improvement, believe in "ArcelorMittal Kryvyi Rih"

Ukraine

a further increase of environmental taxes will not help the industrial enterprises in modernization of production, only limit their financial opportunities.

A new rise of environmental taxes will not lead to environmental improvement, believe in "ArcelorMittal Kryvyi Rih"

Some officials are more concerned with raising funds from environmental taxes than solving real environmental problems in the industrial cities, the head of the mission "ArcelorMittal Kryvyi Rih" in Kiev Vladimir Tkachenko. Modernization of the production costs of firms in a large amount, but instead of incentives to industrial enterprises to increase the taxes, withdrawing working capital, he said. So, for the first nine months of this year, "ArcelorMittal Kryvyi Rih" has paid environmental taxes of 242 million. This is 44% more compared to the same period last year (168 million).

this year the rate for emissions of co2 increased by 25 times – from 0.41 to 10 hryvnia per ton. On a new fiscal initiative. 2020 is offered in 4 times to up the ante on emissions, wastewater discharges and waste disposal – the bill No. 2367 is already registered in the Verkhovna Rada of Ukraine. This will increase budget revenues from environmental taxes from 3.5 to 14 billion a year, will be the "catalyst for the reduction of emissions," said in the explanatory note to the bill.

- the Logic of the bill is formal: times businesses will pay more, then they will have an incentive to reduce emissions. In fact, businesses that implement environmental projects at their own expense, will be less funds for the implementation of new technologies and equipment. And only with their help can really reduce the industrial load on the environment, and it does not need to raise money in the state budget, - says Vladimir Tkachenko. You need other mechanisms and incentives. For example, in neighboring Belarus enterprises reduce environmental taxes on the volume of investment that goes to environmental projects. We have the same environmental taxes – in fact, a fiscal instrument, which largely solves the problem of filling the state budget, and not improving the environment. Money from the environmental tax should remain at the enterprises and in local budgets, to be used exclusively for environmental projects.

further increase of environmental taxes will not help the industrial enterprises in modernization of production, only limit their financial opportunities, says Vladimir Tkachenko. According to him, the new growth rates of environmental taxes, rather, separates Ukraine from a real improvement of the environment, than closer to that goal.

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