The Verkhovna Rada adopted in its first reading the draft law No. 1210, which proposes, among other things, an increase in rents for the extraction of iron ore. According to MP Mahera, this draft law, even in the short term, has negative consequences for the State budget. He wrote about this in his blog on “Korrespondent”.
In his view, this is a fiscal draft law that increases the rent and puts our enterprises at a disadvantage.
“The ultimate beneficiary will not be the state budget, but our foreign competitors – Argentina, Brazil, Russia, etc. If the draft law is passed, the tax-to-profit ratio will be 22.2% in Ukraine and 4% in Russia, respectively. All this will contribute to the closure of enterprises, since working on the territory of our country will be unprofitable,” the MP said.
According to him, the adoption of this draft law can lead to the fact that all our ore enterprises simply stop. And the reaction of the economy in this case will be extremely negative, because instead of raising taxes, the state will receive its reduction, plus an increase in social tension.
“The draft law No. 1210 is also a monster law in scope: it includes three large sections that would be advisable to submit with different draft laws: the fight against offshore companies, rental payments and tax administration. There is not a single positive feedback from the business environment. That says a lot. The promise of the Chairman of the Committee, Hetmantsev, on improving the text of the draft for the second reading only confirms its imperfection,” Serhiy Mahera emphasized.