The Verkhovna Rada approved in the second reading a bill that stipulates for the reduction of the rate of rent for the use of subsoil for amber extraction. Such a norm will help to legalize the production of amber and bring it out of the shadow.
The draft Law "On Amendments to Article 252 of the Tax Code of Ukraine on streamlining the rate of rent for the use of subsoil for amber production" (Registration No. 2241) provides for the reduction of the rent from 25% to 10% to encourage its legal mining.
"For years, Ukrainian lands and fields were being destroyed in a barbaric way because of the so-called black diggers, who had produced amber in almost a criminal way. As a result, hundreds of hectares of destroyed forests, grass cover, fertile soil, damages to groundwater drainage channels. Moreover, we, as a State, have failed to receive hundreds of thousands hryvnias in the budget! The enacted law creates additional incentives for bringing amber extraction out of the shadow economy and legalizing such activity," Minister of Energy and Environmental Protection Oleksiy Orzhel commented on the decision.
Besides, in order to incentivize more to legalize the amber production business, the Transitional Provisions set a grace period under which the rent for the use of earth’s interior for the extraction of amber would be as follows:
until December 31, 2020, inclusive - at the rate of 5 percent;
until December 31, 2021, inclusive - at the rate of 8 percent.
As a reminder, the bill (Registration No. 2241) was developed for the implementation of the Decree of the President of Ukraine "On urgent measures to ensure economic growth, stimulate the development of regions and prevent corruption".