Draft law (No. 1063-2) suggests amendments to Article 288.5 of the Tax Code of Ukraine envisaging payment of minimal rates of standard estimated monetary value of land for rent of land plots of the State property and municipal property:
„0.3 % - for land plots of housing construction cooperatives and garage construction cooperatives ……”;
„1 % - for non-farmlands within lands of farm designation ….. with a total area of no more than 2 hectares per person”;
„3 % - in other cases".
While Article 288.5.2 of this Code envisages the effective rate of the annual sum of payment in the size: "cannot exceed 12 percents of standard estimated monetary value of land" it is proposed to set several floor rates of the rent for certain categories of land.
The Committee believes the draft law breaks the clearness of the administrative procedure for estimation of size of the rent for land plots of the State and municipal property managed by certain officials with the existence of the norm "3% in other cases'. This will cause reduction in proceeds to local budgets and conflict of interests and corruption relations, as there will be a risk of unfounded provision of "important individuals, and other cases legal entities too" with advantages in lease of land and payment of rent.
On the ground of the said above and with a purpose of removing the corruptogenic factor the Committee recommends that the draft law be rejected.