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So-called 'resource' bill for second reading to propose to exempt companies in mining cities from some taxes for 15 years

KYIV. Sept 15 (Interfax-Ukraine) – The Verkhovna Rada Committee on Finance, Tax and Customs Policy, during the consideration of amendments to the so-called "resource" bill (No. 5600), supported an amendment proposing to exempt new companies in mining cities from a number of taxes under the special tax regime for 15 years.

During a vote at a meeting on Tuesday, 18 members of the committee supported the amendment. The committee intends to recommend that parliament takes it into account when voting for the bill at the final reading.

It is proposed to establish that companies that meet such requirements can be exempted for 15 years from paying income taxes, rent for a land plot in communal or state ownership, water and forest use royalties, as well as VAT, Deputy Finance Minister Svitlana Vorobei said.

"Since such mines in cities are major revenue generating companies, and mines are currently on the verge of closure, people may be left without work and be destitute. Therefore, as an experiment, we propose to introduce a special tax regime for newly created industrial enterprises in the settlements of these coal regions, which meet the following criteria: the average number of employees is at least 10 people, the activities of these enterprises should be carried out exclusively in this city, the amount of annual income of such an enterprise shall not exceed UAH 40 million," the Deputy Minister of Finance said at the committee meeting.

At the same time, the share of income from the sale of products of its own production and processed products shall be 90%, Vorobei added.

"That is, it shall not be an enterprise involved in resale," the deputy minister said.

"Single social security contributions, military tax, personal income tax, excise and environmental taxes will remain binding," Vorobei said.

At the same time, the amendment eliminates the risk of obtaining such preferences for a company that manufactures excisable products, the deputy minister added.