Accounting Chamber: over two and a half years, the state has received 179 billion UAH of rent for subsoil use

During 2020 – the first half of 2022, the state and local budgets received 179 billion UAH in rent for subsoil use. 

The press service of the Accounting Chamber reports this.

It is noted that the share of this type of rent has increased from 90% to 95% of the relevant revenues to the state budget over 2.5 years. The growth was due to an increase in taxation rates for subsoil rent, natural gas prices and the volume of production of certain minerals.

In addition, the situation with the receipt of rent from amber mining improved in 2022. In 2020-2021, the plan was fulfilled by only 0.6% and 1.5%. It is worth noting that the Ministry of Finance calculated the planned indicators for the relevant rent for the mentioned period based on the shadow market expert estimates.

The state of affairs changed dramatically after the Cabinet of Ministers approved the form of an agreement on exploration and production in amber subsoil areas – in the first six months of 2022, the plan was fulfilled by almost 217%.

As for the gas production sector, in April 2022, the relevant companies were allowed to avoid paying taxes for natural gas produced and pumped into underground storage facilities during the period of martial law. A separate law limited the price of domestically produced gas.

Thus, in May-July 2022, the budget lost 800 million UAH from natural gas production in Dnipro Oblast alone.

Previously. The war caused a 3 billion UAH drop in rent payments in the first half of 2022 alone.