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In the Parliament considered the losses from the shadow land lease

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19.12.2017

The total losses of the state budget from the shadow rent of land can be estimated at 16 billion UAH

In Ukraine, 11.7 million hectares of land, according to experts, is the shadow rent, which is 28% of the total area of agricultural land, said Deputy Chairman of the Verkhovna Rada Committee on agrarian policy and land relations Oleksandr Bakumenko.

"Leases of lands officially processed only 22.6 million hectares. Thus, the potential amount of land that is the shadow rent, approximately 11.7 million hectares, or 28% of the total area of agricultural lands", - he said at the conference "Decentralization, land management and community development" in Kyiv on Thursday.

Bakumenko said that at present the total area of agricultural land on the territory controlled by Ukraine, which may be leased to natural and legal persons amounts to 34,2 million ha.

He noted that given the size of the tax burden in legally operating enterprises, the total losses of the state budget from the shadow land lease is estimated at UAH 16 billion.

According to Bakumenko, similar estimates of the shadow rent of land was made by the world Bank in the implementation of pilot projects in Mykolayiv and Kyiv regions.

He believes that to withdraw the lease of the land from the shadows is possible through improvement of the taxation of land. In particular, according to Bakumenko, you must pay tax on income of individuals from the lease of land to local budgets at the location of the site.

"This will create an additional incentive to local communities for effective monitoring of official registration of lease of land plots and shares within a certain community," he said.

In addition, Bakumenko considers it necessary to grant local governments the authority to determine the persons entitled to benefits on payment of land tax.

He pointed out that these initiatives are contained in the draft law No. 7363, was the President of Ukraine in Parliament on 6 December this year.

As reported, Ukraine since 2002 a moratorium on the sale of land for agricultural purposes. Therefore, the land in the country is handled mainly on the terms of the lease.

Source: Interfax-Ukraine

 

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