30 November 2015, 11:15
Following the consideration of the draft law (No.3357) at a November 25 meeting of the Committee they decided to recommend the Committee on Taxation and Customs Policy submit to the Verkhovna Rada of Ukraine a proposal on approving the draft law as a basis and take into account the proposals of the Committee.
The draft law offers to outline Chapter III "Corporate income tax" in a new version, which does not include the provisions of Article 142 of the Tax Code of Ukraine concerning the exemption of Chernobyl NPP and enterprises of tax on profits earned at the expense of international technical assistance or funds foreseen in the state budget as Ukraine’s contribution to the Chernobyl Shelter Fund.
The Committee believes that over the lack of such an incentive in the tax legislation, there may emerge a real threat that the projects’ cost will increase, contractors and suppliers will hold demands against SSE "Chernobyl NPP" and as a result significant expenditures from the State Budget and violation of fulfillment of Ukraine’s international obligations.
In addition, the imposition of tax on enterprises’ profit earned at the expense of international technical assistance or funds foreseen in the State Budget as Ukraine’s contribution to the Chernobyl Shelter Fund contradicts international treaties ratified by the Verkhovna Rada of Ukraine, according to which international technical assistance is provided, aimed at improving nuclear and radiation safety of Chernobyl NPP and transforming the Shelter facility into an environmentally safe system.
The Committee proposed to supplement the draft law with the provisions, which will allow to preserve current preferential taxation of Chernobyl NPP’s and enterprises’ profit, obtained at the expense of international technical assistance or funds foreseen in the State Budget as Ukraine's contribution to the Chernobyl Shelter Fund, currently defined in Article 142 of the Tax Code of Ukraine.
The draft law offers to change the concept regarding the object of taxation with a rent for special use of water from the "actual volume of water use, including by secondary water users" to "the volume of consumed (removed) water only by primary water users," which contradicts Articles 48 and 49 of the Water Code of Ukraine, stating that the special water use is chargeable, and it includes the use of water.
In addition, there are remarks regarding the change of the object of taxation from "the volume of water use" to "the volume of water consumed by primary water users," which is unacceptable in terms of securing of rational water use.
The Committee supported amendments as regards the increase of rent for special use of water and did not support the others and offers to preserve imposition of rent for special use of water in the current version of the Tax Code of Ukraine.
The Committee supported the proposal to increase the rates of environmental tax, which is an effective tool to stimulate producers to introduce new, less resource intensive technologies, carry out resource saving activities, and prevent environment pollution.