The Bill (Reg.No.1456) seeks to regulate the matters of special purpose usage of Environmental Pollution charges, together with a part of the Income Tax from businesses, and Value-Added Tax (VAT) paid by mining and smelting businesses and merchant-coke industrial complexes towards nature protection and preservation, and improvement in the environmental situation in localities where such enterprises and their production divisions are operating.
The Bill envisages that these funds will remain at the disposal of businesses and used by them towards nature protection and preservation, agreed with local divisions of the Specially Authorised Central Executive Body dealing with Environmental issues and Natural resources. For inclusion in the relevant list, such businesses should submit grounded calculations for improvements in Environmental Performance and Nature Protection Action Plans.
According to the Bill, 'the mechanism for implementation of Environmental Programmes for mining and smelting businesses, and merchant-coke complexes, envisages that 50% of the Tax imposed will be paid into the State Budget of Ukraine, whereas the remaining 50% will be transferred into a separate ‘Special´ account opened with the State Treasury of Ukraine, and be directed towards implementation and execution of Regional Environmental Programmes, in order to reduce contaminating emissions, and to assist towards other Nature protection and Environmental arrangements.
The Bill proposes that until 1 January 2012, 50% of the VAT amount which has to be paid to the Budget by Mining and Smelting Complex businesses, whatever their ownership status, shall be transferred to a special account with the relevant Local Governments, exclusively towards the funding of nature protection arrangements, launching of up-to-date processes and equipment, and reducing contamination emissions.
Local Governments shall report on a quarterly basis to the Cabinet of Ministers of Ukraine on the utilisation of said funds, and realisation of Nature Protection Programmes.